Wit and Chai bets on ambitious ramp-up to hit ₹200 crore revenue

Mint

2 days ago

MUMBAI
:
In a category crowded with pitch decks and posturing, Pune-based creative agency Wit and Chai is choosing to do things differently. Started six years ago by three friends with no formal advertising background, the company is now scripting an ambitious growth story, with eyes set on a ₹200 crore revenue target.
'We're not advertisers running an agency—we're businessmen running an advertising business," says co-founder Mohit Ghate, who previously built and exited a med-tech startup. What began with a simple Facebook campaign for a café in Pune has grown into a 100-member operation with offices in Pune, Mumbai, and London. The agency services marquee clients such as Coca-Cola, Starbucks, Amul, Kotak, Chitale Bandhu, and Hindustan Pencils.
No legacy, no funding, no pitch frills
Wit and Chai was founded by Ghate, Nahush Gulawani, and Nihar Kolapkar, three friends with unconventional backgrounds for the advertising world. Mohit, an engineering dropout; Nahush, a chartered accountant, was previously with EY; and Nihar brought creative sensibilities from his early stint in Mumbai's ad industry. The trio credits their lack of legacy baggage for shaping a results-first mindset that puts client outcomes ahead of industry jargon.
Wit and Chai has stayed entirely bootstrapped so far. 'We've never raised external capital. Our first client paid for our second," Ghate told Mint in an exclusive interview. A formal fundraise is not on the table yet, though the company is evaluating it as it scales internationally.
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The business posted a 2.5x year-on-year growth in FY25 and is on track to close this fiscal at ₹40 crore in topline. Internal projections expect another 3x growth, after which Ghate anticipates a steady 2x curve as they chase scale. A third-party valuation, commissioned for internal use, pegs the company's worth at ₹40–45 crore.
Built for outcomes, not applause
Unlike many independent agencies that bank on creative flair or network shops focused on scale, Wit and Chai positions itself around execution, efficiency, and business results. It competes with new-age firms like Schbang, Spring Marketing Capital, Talented, and Creativeland Asia, and Wondrlab.
'Most agencies chase likes. We chase outcomes," says Ghate. 'We beat Ogilvy for the global Hindustan Pencils mandate not because we were louder, but because we were focused," he claimed.
Client retention is unusually high in an industry marked by short tenures. Long-term relationships with brands like Amul, Haldiram, and Kotak have allowed the agency to grow without aggressive pitching. 'Retained clients expand their mandates, which leads to better work and better visibility," he says.
This consistent demand has led Wit and Chai to build a house-of-brands structure. It has acquired or taken stakes in three firms over the past 18 months: LMN Communications (for social), Pratisad (for BTL and traditional marketing), Yellout Media (an influencer agency managing talent like Danny and Atharva) and a fourth entity, OPQ Studios, which functions as its in-house production studio.
All entities are now being merged under a new private limited structure, with Wit and Chai operating as the strategic comms core and other brands focusing on execution layers. 'It was getting too complicated as an LLP," says Ghate. 'Now everything is being brought under one roof."
Talent, tech and the trust factor
The agency claims to attract talent disillusioned by the image–driven world of legacy networks. 'People from Schbang, FCB and others have joined us not for bean bags but because they saw value," Ghate says. 'Our office has IKEA furniture, not a podcast studio. But the work is meaningful."
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Their business-first DNA also influences how they adopt technology. Ghate says martech has become a buzzword often misunderstood by both clients and agencies. 'Performance marketing is mathematics. But we're also exploring AI-led creativity where a system can understand a brand's voice and generate content accordingly," he says. In-house tools are built for scheduling and qualitative analysis, while complex tech is outsourced through partnerships. 'Tech has to be useful—not just cool."
On the creative front, the agency is mindful of chasing virality. 'Too many brands want memes and AI content without understanding why. A hospital doesn't need to trend—it needs trust," Ghate says. For clients like Kotak or security solutions firms, the messaging is tuned accordingly.
Scaling abroad, thinking long term
The company is also deliberate in its expansion bets. While many Indian agencies head to the Middle East or Southeast Asia, Wit and Chai has picked the UK as its first global outpost. 'The UK has strong Indian business diaspora, better pricing leverage, and is insulated from EU turbulence," says Ghate. London operations are currently being built out to cater to Indian-origin businesses and local UK SMEs.
Back home, Wit and Chai is setting up satellite offices in Delhi, Hyderabad and Bangalore, but no full-fledged offices beyond Pune and Mumbai for now. 'Clients don't care where we sit, as long as the work gets done," he says.
The agency has also begun exploring new acquisition targets in performance marketing, particularly firms that use AI to optimise campaigns instead of relying purely on headcount. Regional agencies may also be on the radar, especially to meet rising client demand for vernacular storytelling.
Future trends
According to GroupM's TYNY 2025 report, India's total advertising market is projected to grow to ₹1.64 trillion this year, with digital media accounting for over 60% of the spend. As marketers increasingly prioritise performance, content, and commerce-led strategies, independent agencies operating at the intersection of creative and martech are well-positioned to capture this shift. Ghate believes this will lead to two parallel trends: consolidation by large groups and the rise of 5–10 person specialist shops powered by AI.
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'There will be a senior talent crunch in the industry within a few years," he says. 'Anyone who's put in the grunt work will suddenly become rare and valuable."
When asked what surprises outsiders most about building a creative agency, Ghate says: 'Cash flow. That's true for any business. But also the fact that a place like ours—with no fancy chairs or award shelves—is building serious brands."
The short-term goal is to win big at global award shows like Cannes or Kyoorius. But the long-term plan remains rooted in business fundamentals.
'We're not married to advertising. We're here to build impact. That might mean building brands—or acquiring them," Ghate says. 'And if someone makes a good offer to buy us out? I have a few more names for the next agency ready."