Micromax Informatics Limited, New Delhi, a India-based leading mobile handset provider has recived a $45m minority investment from TA Associates, a growth private equity firm.
The new funds will provide additional support to help continue the company’s growth trajectory.
Founded in 2000 as a telecom equipment distributor, Micromax entered the mobile handset market in April 2008 becoming the third largest handset provider in India, as measured by volume.
According to Macquarie Research and Grant Thornton, the Indian wireless market is one of the fastest growing in the world, adding 10 to 15 million mobile subscribers per month. The number of subscribers has grown from approximately 100 million in 2006, to more than 400 million today and is expected to grow to over 800 million over the next three years.
In conjunction with the investment, Naveen Wadhera, Director, TA Associates Advisory Pvt. Ltd., will join the Micromax Board of Directors.
Commenting on the deal, Rajesh Agarwal, Managing Director, Micromax Informatics Limited, was reported to say: “We are pleased to enter this partnership with TA.
“TA offers a unique combination of financial support, strategic guidance and a significant network of contacts, as well as a wealth of experience in the communications sector.
We welcome the firm as our first institutional investor, and anticipate a successful and mutually beneficial relationship”.