Exclusive Mobile News

Micromax seeks over $3 Billion in valuation, approaches Alibaba and Softbank for a stake sale : Report

Share on Facebook
Tweet about this on TwitterShare on Google+Share on StumbleUponShare on LinkedInPin on PinterestShare on Reddit


Micromax, India’s leading home-grown smartphone manufacturer, is seeking to meet a valuation of of $3-3.5 billion and plans to sell a minority stake to potential buyers, Economic Times reported.


The producer of budget smartphones and feature phones, who were earlier toying with the idea of an IPO, has now hinted that they are looking at several other possibilities.

Surprisingly, Micromax has reached out to Chinese e-commerce giant Alibaba and Japan’s SoftBank to lure them to buy a stake in their business. Micromax seems to have carefully observed the recent investments by Alibaba and Softbank, who staged a keen interest in investing in Indian market.

Alibaba-owned Ant Financial services, this month, announced that it will take a 25 percent stake in PayTm’s parent, One97 Communications which will happen to be a strategic partnership between the two parties. Softbank, on the other hand invested a sum as big as $627 million in Indian e-commerce giant Snapdeal.


If the deal comes to success with any of the parties, it will give bumper exits to Micromax’s earlier promoters that includes TA Associates, Sequoia Capital, Sandstone Partners and Madison India Capital HC. TA Associates had acquired a 15 percent stake in 2009 for Rs 100 crore, while Sequoia Capital, Sandstone Partners and Madison India Capital HC own 2.68 percent and around 0.4 percent stake respectively.

Micromax is right now involved in a cut-throat battle with Samsung to acquire the coveted spot of the top smartphone vendor in India. Though, Samsung says that its business is far more better established in India and have almost twice the sale as that of Micromax. Surprisingly, statistics say that the difference between the two is almost insignificant.

Senior Writer

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *