Saurabh Varma on building outcome-driven agencies for the next decade

The advertising and marketing industry stands at a critical point. While traditional agencies have long thrived on creativity and client relationships, large networks are slowly turning to mergers and consolidations to drive measurable outcomes, technological integration, and scalable business models. Many agencies find themselves caught between their legacy identity and the demands of a digital-first, performance-oriented marketplace.

In this timely fireside chat about 'The bold road to an agency IPO" at Social Samosa's AgencyCon, Saurabh Varma, Founder and CEO of Wondrlab India, presents a roadmap for agencies ready to evolve beyond mere survival. Drawing from his experience building a next-generation marketing agency, Varma talks about what it means to be an "agency" in today's world.

Moderated by Hitesh Rajwani, CEO, Social Samosa Network, the discussion centred on how independent agencies can evolve into scalable businesses with long-term value, exploring themes such as funding, IPO-readiness, talent, and the changing nature of creativity and performance in marketing.

Varma began by acknowledging the limitations of the traditional agency model. He pointed out that while many agencies had built successful reputations, they often failed to scale because they did not create “building books”, foundational business systems that support growth. Instead of merely providing creative services, modern companies must focus on delivering outcomes. 

"You can actually drive extraordinary outcomes, providing winning ideas," he said, emphasising that scale must be built into an agency’s DNA from the beginning, not treated as an afterthought.

Rethink the agency identity 

One of the central themes Varma discussed was the opportunity now available for agencies to raise capital. He noted that the Indian market today rewards vision and value creation more than ever before. Investors are looking for businesses with big, future-facing ideas rather than just creative credentials. This has opened the door for agencies to explore IPOs and other funding avenues, provided they are committed to building long-term outcomes.

Varma shared that IPOs are not about short-term gains. "It is a commitment to invest 7–10 years more of your life to drive solutions. It is like a naked man running on a treadmill and everybody is watching you,” he continues that deliver consistently to stakeholders.

He argued that the agency of the future must fundamentally rethink its identity. “The word agency is not a very good word,” he said, noting that traditional agencies operate like middlemen, earning commissions and offering pass-through services. This model is becoming obsolete.

Instead, he urged businesses to define themselves by the outcomes they deliver, positioning themselves as digital, tech, or commerce-led companies. For Wondrlab, this meant building capabilities across marketing tech and content commerce from day one, even at the cost of short-term profitability.

Varma highlighted a shift in global trends where performance marketing is becoming the dominant spend category in advertising. He noted that by 2027, 50% of total digital ad expenditure globally is expected to be invested in performance marketing. In such a world, agencies that cannot demonstrate results will be left behind.

He stressed that success lies not in flashy creative work alone but in performance metrics and client outcomes. “You are not in the business of serving creativity, you are here to serve outcomes.”

Wondrlab’s approach has been deliberate: building a productised service ecosystem, investing heavily in marketing technology, and making strategic acquisitions. 

Discussing the role of commerce in modern agency models, Varma pointed out how few agencies lead with commerce as their primary offering. Instead of creating technology to replace platforms like Google or Amazon, they focused on building on top of these ecosystems using APIs, leveraging data in smarter, outcome-oriented ways.

Offer clarity of vision and genuine outcomes

On the subject of talent, he argued that the industry needs a 'radical shift' in how it nurtures and retains talent. For agencies to attract and retain the best, they must offer clarity of vision and create genuine outcomes that people want to be part of.

As agencies scale, many founders become fatigued and sell off to larger networks, but Varma believes a better path is possible - one where agencies scale with independence, supported by capital and driven by purpose.

Towards the end of the discussion, Varma reflected on the future. He warned that the 'product movement' is already underway, and many agencies are ill-prepared for it. Agencies that survive the next three to five years will be those that integrate services with scalable products, focus on niche strengths and deliver measurable client outcomes. He advocated for flipping the current model: prioritise effectiveness before creativity, and build solutions around performance rather than vanity metrics.

Varma emphasised one non-negotiable for agency leaders: stop thinking like agencies. Instead, focus on raising capital, acquiring strategically, investing in technology and relentlessly focusing on outcomes.

This conversation offered a clear roadmap for agencies seeking to scale beyond survival. It is not creativity alone, but the ability to deliver outcomes backed by vision, capital, and technology - that will define the winners in the coming decade.