Why Hepmil Sold to Publicis Instead of Raising Again
After raising US$11M, Hepmil opted for a Publicis acquisition when CEO Karl Mak admitted the team lacked the M&A capability required for more VC.
Publicis Groupe acquired Singapore-based Hepmil Media Group on October 29, 2025, after co-founders Karl Mak and Adrian Ang declined to pursue a Series B funding round, citing concerns about their ability to execute mergers and acquisitions required for growth.
The decision reflects broader pressures facing Southeast Asian digital media startups as venture funding declined 40% year-over-year between 2023 and 2025, pushing founders toward strategic sales rather than diluted equity rounds.
Founders Choose Strategic Exit Over Growth Capital
Hepmil raised US$968,000 in angel funding in 2017 and US$10 million in Series A funding in 2021 before the Publicis acquisition. Mak, the startup's CEO, said his team lacked experience in buying and integrating companies, which would have been necessary to justify additional venture capital.
"I do not have the experience of buying and integrating companies," Mak told The Business Times. He also noted concerns that raising more funding would inflate Hepmil's valuation, making future exits more complicated.
The acquisition delivered significant returns for early backers, with angel investors earning over 20 times their initial investment. The deal also provided career pathways for Hepmil's 310 employees within a multinational corporation environment.
Leighton Cosseboom
Publicis Gains Creator Network Across Six Markets
Publicis plans to combine its 800 million consumer profiles with Hepmil's 3,000-creator network spanning six Southeast Asian markets. Hepmil's platforms, including comedy sites SGAG, MGAG, and PGAG, reach 70 million combined audience members and serve over 450 brand clients.
Amrita Randhawa of Publicis emphasized the potential for data-driven influencer marketing, combining Hepmil's creative content with Publicis' data capabilities from its Epsilon and Lotame systems. The integration aims to address brand demand for multi-market campaign solutions across the region.
"We're doubling down on data-led creator marketing in one of the world's most dynamic regions," said Arthur Sadoun, Publicis CEO, in a company statement.
Leighton Cosseboom
Strategic Acquisitions Replace Organic Growth in Asia
The Hepmil acquisition follows Publicis' 2023 purchases of US-based creator platforms Captiv8 and Influential, establishing a pattern of buying Asian creative assets rather than building them internally.
This approach reflects how global advertising networks are responding to rising M&A activity in Southeast Asia's digital media sector, which increased 18% as venture funding contracted.
Mak reported a smooth integration with no workforce disruptions, with Hepmil maintaining its brand identity while accessing Publicis' data infrastructure. The company anticipates controlled growth in headcount as it expands services beyond influencer marketing into broader data-driven creative offerings.
Leighton Cosseboom
For Asia's digital media founders, the transaction highlights shifting exit dynamics as compressed valuations and limited growth capital make strategic acquisitions more attractive than traditional venture-backed scaling paths.
The deal's 20x angel returns significantly outperformed typical Asian marketing and communications exits, signaling continued acquirer appetite for established creator networks with regional reach.
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