Funding Updates: Valuefirst raises $6mn From NEA, Canaan Invests in mCarbon While VC’s Start To Disappear..
Mobile VAS space is lately getting a lot of traction and it is an obvious move from the indurstry as the VAS revenues are huge estimated at Rs 5780 crore and growing rapidly at a rate of 70% year-on-year estimated to be Rs16520 crores by June 2010. The same is evident in the latest funding news of Valuefirst and mCarbon.
ValueFirst messaging. a Delhi based SMS services provider has raised series B funding of $6 million from venture capital firm New Enterprise Associates (NEA). In 2006, the company raised its first round of funding of $250,000 from Emergic Ventures of Rajesh Jain. ValueFirst plans to increase its workforce by double from the current 200, and enhance its presence in 35 cities in India. ValueFirst also has plans for international expansion, especially in East Africa and Middle East. Valuefirst claims to have more than 1,300 corporate clients such as ICICI Bank, Standard Chartered, Bajaj Allianz, HCL, Nicholas Piramal, Nortel, Proctor & Gamble, among others.
Reportedly mCarbon another Delhi-based mobile value-added services company, has raised an undisclosed amount of series-A funding from Canaan Partners. mCarbon is in the utility and services space and was founded in late 2007. It has a product that helps manage VAS services, along with other products mcarbon has two products in it flagship platform called Greenroom awaiting patent grant.Impressive enough mcarbon already has Airtel,Idea and MTNL as their clients.This is Canaan’s second investment in the mobile VAS space. It has also invested $5.25 million in mobile TV firm Cellcast Asia.
VC’s Disappearing Act!
Amid this funding news,Venture funding has already taken a downturn in India. Reportedly over ten India-focused venture capital funds withdrew their registration applications with SEBI, during 2008. The total investment proposed by these funds is estimated at Rs 1,000-1,200 crore. Besides liquidity crisis the new guidelines issued by the Reserve Bank of India have supposedly discouraged foreign VC funds from investing in India.
Experts are not optimistic about the venture capital fundings in India in the current quarter….”At the moment, there is a significant gap between the valuation that promoters are seeking and the amount that funds are willing to give. We can expect VC investment to pick up only when the valuations demanded by promoters come to a rational level, in line with the reality” said K Srinivas, vice chairman and managing partner, BTS Investment Advisors as quoted in financial express.
VC funds invested Rs 33,939 crore in Indian markets for the quarter ending December 31, 2008, against Rs 34,772 crore during the previous quarter.
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