One97 picks up 25% in S'pore’s tenCube

KOLKATA: Mobile value-added services (VAS) developer One97 Communications has bought 25% stake in Singapore-based developer of smartphone security technology tenCube for close to Rs 100 crore, a person close to the development told ET. The company will also look at increasing its stake in the Singapore-based company in next few years.

The stake acquisition will help the Indian company tap the fast-growing smartphone-related services market in India and launch the security solution in the country. The smartphone market in India is currently estimated at 3.5 million units a year.

Delhi-based One97 Communications has already struck a deal with top smartphone makers, including BlackBerry and Nokia to embed the application in their upcoming high-end devices. It is now looking to tie up with telecom operators, to bundle it with their services for other handset makers.

One97 Communications managing director Vijay Shekhar Sharma confirmed the stake acquisition but did not divulge the deal size. “We have made a strategic investment in the company. We have a dedicated fund to carry out our investment ambitions and may see more such deals in the coming months,” Mr Sharma said.

The stake acquisition will also help One97 launch its own products in developed markets in the US and European Union, where tenCube has a strong presence.

The Singapore firm’s flagship product WaveSecure is currently marketed by telecom brands, including Telenor and SingTel, in their respective markets.