Yahoo! picks 30 % stake in Indian Info Network firm
Yahoo! Inc has picked up 30 percent strategic stake in Chennai-based Info
Network Management Company, which provides phone directory search service Call
Ezee, the global search engine and news portal announced
Thursday.
The one-third investment allows Yahoo! to join the five-member
Info Network board with one representative director. Yahoo! declined to reveal
the investment value, including premium paid for the stake.
Info Network
too did not disclose its paid-up/authorised capital and investments made so far
to launch Call Ezee in 2006.This is the first round of fund-rising by
the two-year-old Info Network, whose promoters hold 70 percent of the stake
post-dilution.
"The Yahoo! investment will enable us to scale operations
and extend our reach across the country to 26 more cities by 2010 from 14
cities, including six metros - Bangalore, Chennai, Delhi, Hyderabad, Kolkata and
Mumbai," Info Network founder and chief executive T.S. Narayanaswamy told
reporters here.
As a strategic partner, Yahoo! will also provide domain
expertise in deploying networking products and services in Info Network
infrastructure and train its people in the voice-based local search
space."Our investment will help Info Network to establish as a national
player in the directory search service. The Indian local search market is seeing
rapid growth, driven by increasing use of mobile phones by consumers to search
and find local businesses and services," Yahoo! emerging markets head Keith
Nilsson said.
As a 24x7 tele-information provider for 365 days, Info
Network generates about 10,000 calls per day from consumers and helps two
million customers across verticals to benefit from the service.In the
niche directory enquiry service space, the eight-year-old Just Dial is a major
player in the Indian sub-continent, with first-move advantage over Call Ezee and
other search service providers.
"The funds raised will help us to increase
coverage of Call Ezee. We are targeting 100 percent growth by this fiscal
(2008-09) to post revenue of Rs.80 million from Rs.40 million in 2007-08,"
Narayanaswamy affirmed.Going forward, Info Network plans to expand its
customer base to 10 million by 2010 from two million in FY 2008.
"We will
leverage Yahoo!'s domain expertise in our products and services to generate
about 50,000 calls per day over the next 18-24 months from our all-India
operations to post a revenue of Rs.240 million by the end of fiscal 2009-10,"
Narayanaswamy claimed.
Info Network will ramp-up its headcount to 2,000
people in the next 12 months from 450-500 by this year-end to handle its
expanded operations.Call Ezee provides details to calling consumer with
multiple choices of service providers and offers 24-hour helpline for medical
emergencies.
This is the third investment Yahoo! making in Indian
enterprises, after taking similar strategic stakes in Bharatmatrimony.com portal
and Tyroo Media Ltd during the last two-three years.The Internet firm
had participated in two rounds of funding in the matrimonial portal with other
strategic partners. First in 2006 with Canaan Partners, jointly investing $8.7
million and later in early 2008, with Mayfied Fund and Canaan, jointly investing
$11.75 million.
Similarly, Yahoo! invested $8.7 million in the
Gurgaon-based ad network firm Tyroo for a strategic stake.Yahoo!,
however, has not disclosed the percentage of stakes it has in Bharatmatrimony as
well as Tyroo, claiming confidentiality.
|