January 26, 2025

VCI Global Acquires Roots Digital, Expanding in Digital Marketing

Real Internet Sales

Real Internet Sales is a digital marketing agency located in Columbia, South Carolina. We specialize in website design and development, SEO, social media management, online advertising, AI integration, and workflow automation. Our services also include affiliate marketing and digital strategy.

Real Internet Sales also offer specialized programming for real estate firms, using IDX and RETS feeds to automatically populate MLS properties on their websites for improved property listings and sales. We also work with clients in the restaurant, tourism, and e-commerce industries to enhance their digital presence and streamline operations.

News Summary

VCI Global Limited, a leading company in Kuala Lumpur, has acquired Singapore’s Roots Digital Pte. Ltd. for US$2.2 million, emphasizing growth in the digital marketing sector. Roots Digital boasts impressive revenue growth and a solid client portfolio, making this acquisition a strategic move to enhance VCI Global’s capabilities. This merger allows VCI Global to access government funding and leverage Roots Digital’s expertise to capitalize on booming market opportunities.

Exciting Moves in the Digital Marketing Landscape

In an intriguing development, VCI Global Limited, a prominent player based in Kuala Lumpur, Malaysia, is moving ahead with the acquisition of a Singaporean digital marketing firm, Roots Digital Pte. Ltd.. This acquisition is estimated to be worth around US$2.2 million (that’s about SG$3 million), and it carries a price-to-earnings (P/E) ratio of nearly 3.5. With these figures, it’s clear that this deal aims to establish a strong foothold in the burgeoning digital marketing sector.

Roots Digital’s Growth and Success

Roots Digital has proven itself as a formidable player in the digital marketing arena, boasting impressive figures with over US$3 million in revenue and a profit of nearly US$0.9 million for the year 2024. This showcases an astounding 84% year-on-year revenue growth over the last three years! Such a figure underscores the firm’s ability to effectively engage with various digital marketing channels.

Specializing in performance marketing, Roots Digital has been successful in retaining clients with an average retention rate of around 24 months. This is not merely a statistic but speaks volumes about the trust and satisfaction their clients have, pointing to a lesser churn rate that is always a positive sign for a service-oriented business.

Impressive Client Portfolio

Roots Digital has a stellar client roster that includes notable entities such as the National University Cancer Institute, Singapore (NCIS), tech giant Microsoft Corporation, Parkway College of Nursing and Allied Health, and the Orita Sinclair School of Design & Music. Such a portfolio not only showcases their capability but also highlights their presence in key industries in both Malaysia and Singapore.

Support from the Government

What’s more, Roots Digital is recognized as a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG). This means that local small- and medium-sized enterprises (SMEs) can tap into up to 50% funding for digital marketing services, making Roots Digital an even more appealing choice for prospective clients.

Future Synergies and Market Expansion

With the acquisition of Roots Digital, VCI Global envisions nurturing synergies that will enhance their market presence and capabilities in Singapore, particularly in areas like SEO, paid media, and social media advertising. The goal is to combine VCI Global’s expertise with Roots Digital’s regional knowledge to deliver exceptional return on investment (ROI) for their clients.

Looking ahead, the global digital marketing market is forecasted to grow to an astonishing US$1.2 trillion by 2033, with a compound annual growth rate (CAGR) of 11.22% from 2025 to 2033. This growth is primarily attributed to the increasing internet penetration, and VCI Global aims to position itself strategically in this booming market.

A Part of a Larger Strategy

This acquisition isn’t just a one-time event; it’s a step in VCI Global’s broader growth strategy. They are on an ambitious path to enhance their service offerings and escalate the value they provide to clients. Operating across various sectors such as Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity, VCI Global has established a commanding presence in the Asia-Pacific region, as well as in the U.S., Europe, and the Middle East.

Leadership’s Vision

Leading the charge is VCI Global’s Group Executive Chairman and CEO, Dato’ Victor Hoo, who shared his enthusiasm about the expansion into Singapore and hinted at more potential acquisitions on the horizon. Such leadership vision bodes well for the future of the company.

In recent times, VCI Global has made notable strategic moves by investing in AI startups, acquiring solar photovoltaic projects, and securing substantial contracts aimed at providing AI solutions. All these moves demonstrate a steadfast commitment to growth and innovation as they navigate the ever-changing business landscape.

A Bright Future Ahead

As VCI Global and Roots Digital join forces, it seems that exciting times lie ahead for them and their clients. With a blend of innovative strategies and market expertise, they are poised to make a significant impact in the digital marketing domain, and the business community is undoubtedly eager to see what the future holds!