OnMobile looks to raise $35 mn via private equity
The US-based telecom software company OnMobile is expected to a get its third round of funding from a group of investors.
By TNN |
MUMBAI: The US-based telecom software company OnMobile is expected to a get its third round of funding from a group of investors. The telecom value-added services (VAS) player is raising around $35m from Goldman Sachs, Deutsche Bank and two more private equity players, according to sources.
The company was started by Infosys Technologies, which holds a 12% stake in OnMobile. The investment is expected to be announced in a week’s time, sources said.
Post investment, Infosys’ stake will be diluted, but not significantly. ET in its April, ’06 edition reported that OnMobile is in talks with Silicon-Valley-based group of investors to raise money for the company’s growth. OnMobile has aggressive growth plans charted out for the year. The Rs 50-crore OnMobile plans to close ’06-07 at Rs 100 crore.
Investors are believed to have valued the company at $270m, which is far higher than its actual revenues. The valuation is being calculated on the basis of how the VAS industry as a whole is performing. Such a high valuation indicates that the VAS sector is a promising segment in the telecom industry.
Increasingly, many VCs are pumping money in this segment. Numerous attempts to get OnMobile officials to comment on the issue failed. But industry sources confirmed that the firm is raising its next round of funding.
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Apart from Infosys, there are several venture fund investors in the company such as Argo Global Capital Partners as well, whose investors include France Telecom, Deutsche Telecom and Singapore Telecom. The money raised from this round will be used to fund the company’s future expansion plans. OnMobile provides integrated software to telecom services provider, media houses and corporates. The company’s solutions are basically geared to provide entertainment and mobile-based commerce using technologies like WAP and GPRS.
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