Why Most Independent Agencies Don’t Scale — Atul Hegde Explains

Atul Hegde is one of the most enduring voices in India’s digital marketing story — an entrepreneur who has spent over 25 years shaping how brands think about media, creativity, and scale. He’s best known as the Founder & Director of YAAP, a tech- and data-led content agency operating across India, the UAE, and Singapore. This integrated model — blending creative design, and influencer and content marketing — has helped YAAP grow as one of the few independent agencies competing at national scale.

As Co-Founder of Rainmaker Ventures, he also backs early-stage technology startups and mentors founders closely. In conversation with Gautam Shelar, he reflects on his early innings, the keys to scaling an independent agency, and building a politics-free structure at YAAP.

Edited excerpts…

What makes great campaigns great?

Great campaigns are built on simplicity. A sharp, single-minded idea is everything. At the script stage, the agency’s clarity is critical — then a great filmmaker elevates it. If you look at the classics, they’re incredibly simple at heart. That’s the combination you chase every time — a tight script and the right director to bring it alive. Even then, it’s hard to predict what will become iconic. Over three decades, out of hundreds of campaigns, only a handful truly endure. That’s the creative struggle.

Do budgets matter?

Budgets matter, but they’re not the starting point. Not every film needs a massive budget, but every script deserves the budget appropriate for its idea and treatment. You can’t underfund a script that requires scale — it will simply not work. 

When we worked with Mr Bachchan, for instance, we were clear that we wanted the best — global technicians, shoots across Europe, world-class CGI talent from Israel. No expenses spared. And it showed. When building a global company, the work has to reflect that ambition.

Cue us into your move into digital, and the road to Rainmaker and YAAP.

Moving into digital was one of the best decisions I’ve made, even though it took seven or eight more years for digital to become mainstream in India. I spent a solid seven-eight years working in digital before exiting and starting Rainmaker Ventures with a close childhood friend.

Rainmaker began in 2006 as a fund focused primarily on media, with some non-media bets. YAAP was funded through Rainmaker, and over time, our second innings in digital marketing took shape. We acquired Oplifi — a programmatic media firm in Singapore — then Soinsi Media in influencer marketing, Elephant Design in Delhi, and Crayons Communications in the Middle East. All now sit under the YAAP umbrella, except Oplifi which continues as an independent brand.

How did you structure YAAP to stand out in such a crowded agency ecosystem?

When we launched YAAP — maybe the 200th digital agency at the time — we were clear about three things: A) build for scale, B) create a genuine differentiator, C) attract entrepreneurial talent willing to commit long-term.

Nothing meaningful gets built in a hurry. We wanted people ready to give a decade or more to building something substantial.

The most critical decision we made was our structure: YAAP has no CEO. We operate like a partnership firm. We have Senior Partners and Partners who run the company, all reporting to me. A Senior Partner is defined either by geography or expertise. So when we acquired Elephant Design, its founders joined as Senior Partners overseeing design. When we acquired Crayons in Dubai, its CEO became our Senior Partner for the region. Oplifi’s founder is Senior Partner for media.

This unleashes entrepreneurial ownership. For example, Manan Kapur, a homegrown leader from our Ignitee days, now runs the entire digital business — one of the youngest managers handling a business of this size. Retaining senior talent is a major challenge in independent agencies; our partnership model ensures everyone is vested and incentivised to build their own vision within YAAP.

Today, we’re at ₹170–200 crore topline, with 125 people across seven locations. We operate in India, Singapore, and the Middle East; 70–75% of business comes from India. Key brands include Dubai Tourism, RuPay, UPI, Adani Group, Jindal Stainless, SBI Cards, Del Monte, Assam Tourism, Startup India, and NITI Aayog.

What are the biggest struggles independent agencies face in scaling?

I wish we could build a body for independent agencies in India — digital, offline, everything — because the challenges are similar. Most independents don’t know how to leverage capital, manage cash flows, or build financial discipline. They do brilliant client work — often more innovative than network agencies — but networks have strong financial systems.

Cash flow mismanagement kills agencies. One client default triggers the cycle; and then founders spend all their time firefighting instead of doing great work. Our industry also has no entry barrier — two bright people can start an agency tomorrow. The real differentiator isn’t creative capability, it’s building an organisation with financial rigour.

How is AI reshaping the industry?

We’re one of the industries that will be disrupted the most. But right now, a lot of the AI talk — like “AI-generated campaigns” — is fluff. The real value isn’t in superficial content generation; that’s still basic and evolving.

We’re focusing on AI for internal efficiencies: finance, HR, workflow management. That’s where AI can transform organisational strength. Content creation through AI — images, basic videos, social copy — is early-stage. And there are still unresolved issues: IP ownership and compliance.

Brands do want to experiment, and rightly so, but the real winners will be those who know how to apply AI beyond the obvious — to build stronger, smarter organisations.

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Published on: Monday, December 01, 2025, 06:00 AM IST