Yello Digital Marketing (YDM), the online advertising unit under South Korean internet group Yello Mobile, has secured a $15 million investment from Partners For Growth, the private equity division of SVB Financial Group, according to media reports.
YDM is said to use the proceeds in strengthening its control in regional affiliates through stock purchase.
“Through this investment, we have received high marks on our business model, which combines various companies that lead digital marketing, and its synergy. In order to reinforce our synergy into the next level, we will focus on strengthening our businesses to become a leading digital marketing firm in Asia,” Korean newswire The Investor quoted Lee Sang-seok, CEO of the digital advertising company.
In the last 20 months, YDM has acquired several regional peers in a consolidation move in Southeast Asia including Thailand’s Adyim and Computerlogy, Vietnam’s CleverAds, Indonesia’s Adplus and MediaTrac, and Singapore’s GushCloud.
Last year, the company claimed to have 22 subsidiaries and affiliates, which it called the “YDM family of companies”. However, current information on its website shows that the number is 18 units.
In an exclusive interview with DEALSTREETASIA in 2015, YDM’s chief executive said his goal was to look for more targets in Southeast Asia after having acquired six businesses in this region.
“Southeast Asia is in the early stages (for the digital marketing industry), where there’s a huge potential for growth. (…) we feel that looking at the next few years, SEA is the place for us to penetrate in an early stage which will allow us to have the dominant position,” he said.
Lee added that he mainly looked at more mature markets in this region, that is to say Singapore, Indonesia, Thailand, Vietnam and Malaysia.
The parent firm, Yello Mobile, has so far managed pre-IPO fundraising worth 100 billion won from Formation 8, SBI Holdings, OEP and others, being valued at over $4 billion. Its Yello Shopping Media subsidiary also widened its regional presence by buying part of stakes at Vietnamese price comparison site Websosanh last year and forming partnership with PriceArea.com, Indonesia’s largest such platform.