An entrepreneur who set up a web business from his spare bedroom has sold his company for £40 million.

In an amazing rags to riches tale, Arjo Ghosh told today how he developed his fledgling firm into one of the country's leading digital marketing agencies.

And the 39-year-old is refusing to rest on his laurels - and now wants to make Spannerworks the top agencies in Europe.

Mr Ghosh started Spannerworks alone from the tiny spare room of his flat in Sillwood Place, Brighton.

A decade later, the company trades from an impressive 7,000 square feet office in Palace Place off North Street in the city and has opened a second site in London.

He now employs 80 people and has sold his business for £40 million but it continues to trade under the same name and management.

Mr Ghosh said: "When I started I didn't get any loans or invest any of my own money because I didn't have any.

"It was hand to mouth and I worked part time for an advertising and marketing agency in London.

"I didn't dream it would be this successful. Now I want to become one of the leading agencies in Europe."

Mr Ghosh grew up in London as the son of an Indian chartered accountant father and British mother.

His first venture saw him employing his friends to help repair the sheds of grandmothers when he was just 14.

He began working for an IT company after graduating with an English literature and sociology degree from the then Liverpool Polytechnic in 1991.

Shortly after starting Spannerworks he met Robin Hislop who remained his business partner until last December.

Spannerworks raises the profile of companies to help drive more customers to its websites through search engines, such as Google.

Its clients include Virgin and hotel group Best Western.

Mr Ghosh said: "Robin came on board with his two computers which expanded the business to three computers.

"They were homemade computers so he was very proud of them and we relocated to the hallway of my flat.

"For the first five years I was unable to pay myself a salary.

"But over the last two years things have taken off and we have grown from 20 to 80 members of staff.

"I have never been a serial entrepreneur and Spannerworks is my only business venture."

Mr Ghosh, who lives in Hove, married wife Sejal in 2001 and had daughter Layla three years ago.

Despite the raising profile of his business, he refuses to move the company to London because he wants it to keep his Brighton roots.

He said: "Spannerworks has got a Brighton atmosphere which is something I felt was really important.

"I have been asked to move the business many times but have always been adamant the soul will stay in Brighton."

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