Japanese marketing technology firm Genie, part of SoftBank Group, has paid $70 million in cash to acquire revenue optimization platform Zelto (formerly known as AdPushup), a person familiar with the matter said, delivering 40x returns for multiple angels. Investors who started their journey in India.
The acquisition is a dramatic turnaround for 10-year-old Zelto, which provides tools for content creators and web publishers to tap into dozens of ad exchanges to generate additional revenue. In the year In 2014, the startup was running out of cash. Later, the marquee service struggled with its product offering after struggling to gain traction, Zelto founder and CEO Ankit Oberoi told TechCrunch in an interview.
The two organizations announced the deal on Thursday, but did not disclose the terms of the deal. The source requested anonymity to share personal information. Zelto Oberoi, which has been profitable for several years and has raised at least $2.5 million in external funding during its start-up journey, declined to disclose the terms of the deal. Elle, NDTV, CNT, PCMag, Mashable and GSMArena are among some of the clients of AdPushup, a Zelto marquee offering, according to the company’s website.
“It’s been a rollercoaster ride. We had our fair share of challenges. But I think those challenging times were worth it,” Oberoi said. “After the entrance, customers were leaving. Half of the group left type. But it forced us to look at the fundamental value we offer to customers. And in the year When we ran out of money in 2014, we were forced to be frugal and profitable.
The acquisition will not significantly change how Zelto operates, he said. “It’s business as usual for us. But now, with the support of a Softbank-backed company, we will invest heavily in our growth and expand into previously unexplored Southeast Asian markets. Zelto, which has a large team in India and has started its journey, says the US is its headquarters and biggest market.
I am very happy to have this partnership that will greatly advance the mission of Zelto and Genie. I first met Ankit seven years ago. At that time, it was still a small company, but I invested in Ankit thinking that it would become a leading global entrepreneur in the industry,” said Tomoaki Kudo, CEO of Genie, in a statement.
“Furthermore, I have deep respect for their strong growth in the highly competitive markets of North America and India. Going forward, we will learn from the North American and Indian markets, Zelto’s technology, services, expertise and corporate culture, and vigorously promote Genie’s globalization to realize its mission.”
