Micromax looking for investors in defense of Indian market

In case you have not noticed, the Indian market is a hotbed of activity lately with companies like Sony and HTC announcing plans for the country in hopes of keeping up with manufacturers like Samsung and Xiaomi that are moving into the country. One company that has not missed out on the increased scrutiny the Indian market is getting is Micromax, one of the local favorites in India. Although Micromax enjoys a bit of a home field advantage, the company cannot rest its laurels on that and sources indicate the company has started the process of bringing on board some new investors to help provide capital for future research and development needs.

Micromax does not comment on market speculation, but sources believe the company hopes to raise up to $1 billion from investors. One source for the funds that has been cited is Japan’s SoftBank, which could join existing investors like TA Associates, Sequoia Capital, Sandstone Capital and Madison India Capital. Another option for Micromax would be an IPO, but analysts think the company’s leaders are not yet ready to go public.

Micromax hopes an infusion of capital will help it develop new products and services so that it can differentiate itself in the increasingly crowded Indian market. According to one firm, Canalys, Micromax is the largest smartphone vendor in India as of the fourth quarter of 2014, overtaking Samsung on the way to claiming 22 percent of shipments. Staying in that top spot will be a challenge, but the potential upside is worth it as India is the fastest growing market in the world right now.

source: NDTV

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