Lehman Brothers to fund Cellebrum's plans

NEW DELHI: Cellebrum, a Delhi-based value added services (VAS) solutions provider has announced that it will be getting funded by Lehman Brothers.

The funding amount was not disclosed but according to sources, the amount will be close to $15m. Cellebrum is the VAS arm of Delhi-based Mcorp Group. The board of the company is expected to meet on January 3, ’07 in Bangalore to finalise on the amount and equity offload, said industry sources.

However, it is known that the amount raised will be invested in the technological development of the company. Sources say that the company is working on couple of new services and funds are required for the research and development.

Apart from raising money, Cellebrum is also planning to start an incubation fund. The money from the fund will be mainly used to takeover smaller players in the VAS segment or get into strategic tie ups to launch more services in the telecom sector.

Dilip Modi, president, MCorp Global Group said, "The Indian VAS industry, estimated to be around Rs 2,500 crore is growing at approximately 25-30% year-on-year."