Droga5 Secures New Financing for Expansion

Backers include Silverman, Pittman

New York-based Droga5 is eyeing expansion into new markets including London following an infusion of capital from a group of investors led by Henry Silverman that also includes Bob Pittman.

The company would not confirm reports that the investment is $6-7 million dollars.

According to one industry source, independent Droga5, which ended last year with estimated revenue of $29 million, had in recent weeks been talking to a host of potential investors, including major holding companies. The investment from the Silverman group is a capital infusion and not an ownership stake.

Droga5, which was founded by former Publicis Groupe chief creative officer David Droga in 2006, includes Prudential, Puma, Kraft Foods, Hennessy, Amstel Light and Microsoft among its clients. In addition to New York, Droga5 has an office in Sydney.

After leaving Publicis in 2005, Droga created Honeyshed, an online shopping venture developed in conjunction with production house Smuggler and backed by Publicis. The French holding company shut it down in 2009 in the wake of the global economic crisis.

Financier Henry Silverman, best known for his role in building Cendant, is vice chair of private equity firm Apollo Global Management. Bob Pittman, CEO of Clear Channel, is a founder of MTV Networks who has made prior investments with Silverman in companies including Six Flags of America.