Taiwan-based MediaTek Inc. is investing $20 million in BK Modi's mobile valued-added services firm Spice Digital Ltd. MediaTek Inc. is a fabless semiconductor company for wireless communications and digital multimedia solutions.
According to a Reuters copy, MediaTek is picking up 10 per cent stake in Spice Digital, thus valuing the company at $200 million. Spice Digital Ltd is one of the largest VAS players in the country, with over 30 million subscribers. The company has presence in 20 countries across Africa, the Middle East and the South-east Asia.
"India is already one of the fastest-growing large economies in the world and has the potential to become the world's largest economy. Mobile Internet can help India achieve double-digit GDP growth rate and our businesses continue to lead the country's move on the digital highway with mobile Internet," said Dr Bhupendra Kumar Modi, chairman of Spice Global.
"MediaTek is well known as a leading Mobile IC solutions provider. So, we are very excited to have signed this definitive agreement with MediaTek. Through this investment, we can offer more advanced and innovative services, and enrich the digital mobile life of the future. This strategic partnership will enable us to fulfill our vision of becoming the leader in mobile Internet space in the i2i region by jointly developing products and services for the said markets," he added.
"The mobile Internet presents a wealth of opportunity for MediaTek and we believe India's IVR and mVAS market, where Spice Digital's core business lies, will continue to grow. Through this investment in Spice Digital, we are hoping to capitalise on its market potential and reinforce its strong operator relationship and leading position in India, South-East Asia, Africa and the Middle East," said Ming-Kai Tsai, chairman of MediaTek.