Logicserve Digital Funding: Digital marketing startup Logicserve raises Rs 80 crore in funding from Florintree Advisors


Logicserve Digital, one of India’s largest integrated digital marketing agencies, has raised Rs 80 crore from Florintree Advisors, an alternative asset management firm, and is already in talks to raise a series B round of around Rs 200 crore in the next 3-4 months at a valuation of Rs 1,000 crore, said Prasad Shejale, founder and CEO, Logicserve Digital.

“We have big plans. We are not just an agency but a transformative platform, which is why we are also rebranding the company as LS Digital. It’s a platform that will provide brands with integrated solutions across the consumer’s journey,” Shejale added.

Florintree Advisors, which picked up 35% in LS Digital for its investment, has funded startups such as ideaForge,

, Freight Tiger and FreshMenu. It is headed by Mathew Cyriac, former MD at Blackstone.

“We have done a multi-stage deal with the commitment to invest more money in LS Digital. We have given exit to some of the secondary sellers and we will hold 35% of the company,” said Cyriac.

With the fresh funding, LS Digital has acquired a majority stake in Bengaluru-headquartered digital agency Langoor for an undisclosed sum.

Founded in 2010 by Ruchir Punjabi and Venugopal Ganganna, Langoor has over 150 employees and presence across India, the Middle East and Australia.

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In September 2019, French communications network Havas Group acquired Langoor, but the two companies parted ways last month due to a difference in vision and goals in a post-pandemic world.

“We are the largest independent integrated digital agency with 550 people. Now we are looking at establishing ourselves as the global leader in this space with capabilities across six areas – Media, UI/UX, Creative & Communication, CX (Martech), Data & Insights and Tech Innovations,” said Shejale. “So, to do that, we have acquired a 60% stake in CX company Langoor in an all-cash deal. The remaining 40% we will acquire in cash and stock over the next two years.”

To plug the gaps, the company is also in advanced negotiations to acquire a UI/UX agency and a digital first agency.

“With all the transactions and acquisitions, LS Digital will be a much larger and more stable company, and we are already seeing some inbound interest. So, we will raise money from third parties,” Shejale said.

LS Digital was launched in 2006, when digital was a nice-to-have medium and mainly focused on a few digital channels and mainly media. In the last 16 years, digital first brands have disrupted many industries and traditional brands are changing rapidly to make digital their focus area.
“It’s a survival battle for many, and they need to transform marketing with digital at the core,” Shejale said. “And we want to provide a best-of-breed digital marketing transformation platform formed by several expert companies coming together. A one-stop service provider to help brands across the six important areas.”

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