LS Digital expands global footprint with US push and strategic acquisitions

LS Digital, an integrated digital business transformation firm, has set its sights on conquering the US market through a strategic partnership with American marketing consultancy .fearless. Together, they have launched a joint venture, .fear-LS, aimed at solving a growing problem plaguing businesses globally—digital friction.

Digital friction occurs when there is an operational disconnect within the buyer’s journey, leading to inefficiencies that hinder a seamless customer experience. This is especially important as more companies attempt to navigate the complexities of digital transformation. LS Digital is banking on optimising systems and processes to address this issue, with the goal of driving growth and improving return on investment (ROI).

The launch of .fear-LS signals LS Digital’s first major foray into the American market, following expansions into the UK, the Middle East, and Australia. For Prasad Shejale, co-founder and CEO of LS Digital, this venture is the latest milestone in a career that has always been driven by a tech-focused mindset.

Shejale’s journey into digital marketing began in the early 1990s, long before e-commerce took hold in India. An alumnus of IIT Madras, he initially worked in software development and backend operations for e-commerce before transitioning into digital marketing. His agency was among the first in India to partner with Google, a move that underscored a key realisation for Shejale: when companies talk about digital, they often view it as just a channel instead of a transformative business tool.

Over time, he witnessed a paradigm shift in the advertising industry. Traditional ad agencies began integrating technology into their creative offerings, and systems integrators started acquiring media and creative agencies to use digital as a growth catalyst. This convergence is where LS Digital found its niche, positioning itself at the intersection of media, technology, and creative services.

“Digital isn’t just about media planning or buying; it’s about creating a seamless, tech-driven customer experience,” Shejale told Campaign. This philosophy has guided LS Digital’s approach to solving a critical challenge in the digital landscape—bridging the gap between digital media, user experience (UX), and user interface (UI) design.

Tackling digital friction

One of LS Digital’s primary goals is to eliminate digital friction, which often occurs when media planning teams lack the necessary skill sets in UX and UI design. This disconnect can result in poorly designed digital assets, such as websites and apps, that disrupt the user journey.

Shejale believes the solution lies in providing a holistic digital transformation service that integrates media, creative, and technology. “The era of long-running, single-theme campaigns like Nirma’s ‘Sab ki pasand’ (Everyone’s preference) or HDFC's ‘Sar utha ke jiyo’ (Live with head held high) is over. Today’s campaigns need to be dynamic, adapting to different formats and channels while maintaining a consistent underlying proposition,” he said.

LS Digital's, formerly known as Logicserve Digital, holistic approach has been bolstered by a series of strategic acquisitions aimed at creating a full-service business offering. In 2023, the company acquired Social Panga, an integrated creative and digital marketing agency. This followed its 2022 acquisitions of Langoor Digital, a technology-first digital marketing agency, and Hyderabad-based F1 Studioz, a specialist in UI/UX design.

Gaurav Arora, co-founder, Social Panga.

The F1 Studioz acquisition was supported by an INR 60 crore fundraising round, with investors including Phaneesh Murthy, former CEO of iGate, Bhupinder Singh, founder of InCred, and Karan Bhagat, founder and CEO of IIFL Wealth. The funds were earmarked to scale up LS Digital’s operations and establish a global presence.

However, Shejale prefers not to call these acquisitions. Instead, he sees them as “the best of the breed people coming together to solve certain business challenges.” This convergence of talent and expertise is core to LS Digital’s strategy of offering a well-rounded business solution.

A data-driven future

After putting media, creative, and UX/UI pillars firmly in place, LS Digital turned its attention to data a few years ago. As consumers increasingly interact with brands across multiple digital and physical touchpoints, they generate a significant amount of data. LS Digital’s challenge is to master the collection, collation, and activation of this data to create personalised and meaningful experiences for customers.

Shejale emphasises the role of artificial intelligence (AI) and machine learning (ML) in this data-driven strategy. However, the effectiveness of AI and ML depends heavily on the quality and quantity of data available, making data the fourth pillar of LS Digital’s transformation framework.

Speed is another crucial factor, particularly as technology evolves rapidly. Companies that can’t keep up risk falling behind, which is why LS Digital places a strong emphasis on agility and adaptability.

Anand Bhadkamkar, chief financial officer, LS Digital.

Operational restructuring and vertical integration

To streamline its operations and further align its service offerings, LS Digital restructured in June 2024. Following the integration of its acquisitions, the company created six verticals, each led by a CEO responsible for strategy, business execution, and revenue. These leaders are tasked with building vertical-specific solutions while driving cross-selling and upselling to existing clients.

This restructuring is part of LS Digital’s broader strategy to create holistic, data-driven solutions for brands. “Brands today want more than just media buys or creative campaigns,” said Santosh Shukla, CEO and co-founder of F1 Studioz. “They want comprehensive solutions that address digital engagement, customer retention, and sales conversion.”

According to Shukla, brands are increasingly recognising the need for an integrated approach that solves core business problems. “In the end, they want more customers in these tough times. That’s not just the media team’s problem; if the funnel at the landing page is broken, the user experience is disrupted. We have specialists to solve these issues in a holistic approach,” he said.

LS Digital’s ambitions now extend well beyond India. Currently, 30-40% of its clients are based in the UK and the US, with the company aiming to further strengthen its presence in these regions, as well as Australia and the Middle East.

In FY 2023-24, LS Digital grew at a compound annual growth rate (CAGR) of 40%, with gross revenue reaching INR 1,700 crore. However, Shejale insists that gross revenue isn’t the ideal metric for growth. Instead, LS Digital is focused on driving its bottom line as it expands globally.

Despite global declines in media spending, LS Digital has managed to navigate the downturn effectively. According to Anand Bhadkamkar, CFO of LS Digital, the company’s media-centric operations in India have helped cushion the blow. “While global holding companies report challenges, India’s media landscape remains strong,” Bhadkamkar said.

To further safeguard against industry downturns, LS Digital is investing in adjacent and non-linear services. “Creating linear services that are attached to your core has its risks and rewards,” said Venu Ganganna, LS Digital’s co-founder and chief innovation officer. “Investing in adjacent businesses and use cases, which are non-linear in nature, has given us a security cushion to navigate industry ups and downs.”

As LS Digital continues its global expansion, the company remains committed to its vision of holistic digital transformation. With its unique blend of media, creative, and technology expertise, coupled with strategic acquisitions and partnerships, LS Digital is well-positioned to become a major player on the international stage. Whether it can maintain its momentum and realise its global ambitions remains to be seen, but one thing is certain: LS Digital is on the rise.