Mumbai Angels, one of the leading groups of angel investors has made their second investment of $500K with Onward Mobility. Initially, the group had invested Rs 2 crore and with the second investment the company has crossed $ 1 million investment in mobile applications and solutions.
Fresh shares were issued from the company for the second round. The board members at Onward Mobility from Mumbai Angels include Rajiv Dadlani, Vivek Nathwani and Vikas Choudhuri. This investmest has been confirmed a member from Mumbai Angels, Anil Joshi. This Mumbai-based company has plans of utilizing these funds for expanding its product offering as well as its distribution in India.
Presently, the company has four live mobile apps in the market – MobiCop, MobiSecret and MobiRecord. MobiCop is security software used for tracking mobile phones in case of theft or loss and safeguards the data. MobiSecret allows its users to hide their personal data, for example, images, sound clips, videos, etc on mobile handsets, and thus prevent misuse. MobiRecord, further offers its users with recording of voice memos otherwise phone calls without any interrupting beeps.
Investors believe that the company has unique distribution models. Onward Mobility sells products across India through retail counters, which is quite rare with mobile app companies, since usually the applications are sold online. The company has claimed that its products carrying their brand name Mobi, are by now present in more than 10,000 retail outlets across the country. Also, the company has planned strategic partnerships with several content publishers and will also introduce their partner products, such as, games, entertainment, music, and other content using the unique offline distribution channel within next few months.
Rajiv Dadlani have commented that the distribution model of Onward Mobility is more suitable to the Indian market, when compared to the other existing distribution models, including the online or via the telcos/operators models. Also, in the FMCG the company has established new kinds of mobile applications. Currently, mobile phones is largest category among the consumer products in India (following detergent / soap and tooth-paste), with more than a 60 per cent penetration (and increase) of the population, the potential of the company to grow is tremendous.
It appears that Mumbai Angels believes in investing more in the mobile space. Earlier this year, they have made substantial investments in Mobiquest. Mobiquest one of the leading mobile applications and solution companies in Mumbai. Also, they have recently walked out with their investment in Inmobi that gave the company one of their best returns. Mumbai Angels is one of the investors in Hyderabad-based mobile television company, Apalya Technologies Pvt Ltd., which has lately raised around $3 million from Qualcomm Ventures and IDG Ventures.
WAT’s take on the subject – With the growing investment in the mobile space, the consumers are sure to receive quality as well as quantity of products. Also, another benefit which can be thought of is the development of offline retail distribution setup. Once this setup is mature, direct selling of these apps to consumers through mobile commerce, is a sure shot extension which the company should think of. But before that, the first hand availability of online selling has to be really a hit, for it to sustain the pressures of an offline shelf though.