TOM Online may sell stake in indiagames

By Praneeth • November 23, 2006

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Economic Times: TOM Online Inc a leading wireless Internet company in China providing value-added multimedia products and services. is looking to sell its 62% stake in Mumbai-based Indiagames. The new investor is expected to pump in $25m in the company. it will be the largest investment in the fledgling Indian gaming industry.

Due to the valuation and the size of TOM Online’s stake, none of the local venture capital funds are interested in picking up the stake. The management along with the young founder Vishal Gondal has been scouring the market for an investor.TOM Online is exiting its investment as its business in China has slowed down and it seems to have given up plans for expanding into India. Indiagames is the largest developer of BREW-based applications in India and has successfully created and deployed several international titles, such as The Mummy, Scorpion King, Predator and Spy Kids.