Who buys a Micromax?? TA Associates, a PE major just did. They have bought a minority stake in ‘the xtreme in telecommunication’ for about Rs. 225 crores ONLY. This is one of the largest technology investment in India in the last year. The stake sold is ascertained to be less than 20% valuing the company at excess of Rs. 1100 crores.
The fund raised will help Micromax expand its handset business to Africa and Latin America. The company is all set to launch operations in Nepal later this month.
The Company sold 7 lakh handsets in December 2009 alone and are targeting selling a million by the year end. Micromax will then stand third in sales after Nokia and Samsung. Only 18 months since inception, Micromax targetting Rs. 1500 crores in revenues in the current fiscal. The company has 26 models rolled out in the market, out of which 23 are dual SIM. The company is leader in selling handsets with QWERTY keypad selling 80,000 handsets a month.
My perspective of the deal: I still prefer my HTC for use. But when it comes to business and finance, Micromax sure is Xtreme.
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