In a transfer to remain competitive in opposition to competitors like Samsung and Xiaomi, home cell handset maker Micromax is planning to rope in strategic investors on its board within the next 2-three months, as part of its plans to increase product portfolio and services.
“Micromax is having a look at beefing up investments in analysis and development of its services and so, getting a strategic investor on board makes sense,” sources stated.
They introduced that the corporate is in discussions with possible companions and these types of selections “take time”. “it’ll be a month or two sooner than the corporate broadcasts anything,” they stated.
When contacted, a Micromax spokesperson stated: “As an organization policy, we don’t touch upon any market hypothesis.”
Micromax looking for strategic investors
There had been speculations that Micromax is taking a look at raising as much as $1 billion from in a foreign country investors, together with Japan’s softbank, as it seems to be to invest in startups and bringing in innovative expertise to protect its turf towards competitors like Samsung and Xiaomi.
Alternatively, the company has stated that its founders will stay on. Sources stated though Micromax has the choice of entering into for list but the Gurgaon-based Micromax is prone to choose in favour of “strategic partners” than an IPO.
In 2010, Micromax had filed for a public record but later shelved its plans citing terrible market stipulations.
“The funding would additionally improve building of recent merchandise and technology as this might lend a hand Micromax differentiate itself in the crowded smartphone market,” the sources stated. Micromax’s investors embody TA buddies, Sequoia Capital, Sandstone Capital and Madison India Capital.
In line with research firm Canalys, Micromax overtook Samsung (20 percent) as India’s greatest handset vendor with 22 percent of shipments within the October-December 2014 quarter.
The Korean agency has challenged the document. Affordable handsets from homegrown companies, particularly Micromax, is credited to have helped India turn into some of the fastest growing handset markets globally.
For smartphones too, affordable gadgets, especially these below Rs. 10,000 are driving the boom out there, making it the sector’s third greatest market.