MobiApps aims at 4-fold rise in revenues

Raises $10 m in round 2; to foray into Australia, China.

MobiApps Holdings Pte Ltd, a provider of terrestrial and satellite technologies for commercial communication, has raised $10 million series B funding and chalked out aggressive growth strategy.

The company plans to enter the Australian and Chinese markets with a range of products in the next 18 months. It also expects to register a four-fold jump in its revenues over the next one year, MobiApps CEO Sanjay Chakrabarty said.

The company, which was recently honoured with the Best Transportation Accessory award for its marine tracking product called 'Seakey', at the National Design Excellence Awards.

MobiApps recently bagged a multi-million dollar OEM order for the supply of a marine tracking product, a satellite-based communication system, from Volvo Penta, a Volvo group company. The order will last till 2008 and is renewable for three years thereafter, Chakrabarty told Business Standard.

The marine tracking product is a satellite-based communication system that can be integrated on a boat of any size. Whether the boat is at sea, or near the shore, Seakey communicates important boat data along with vital emergency messages via satellite to the response centre. It is meant to monitor the boat and allows the owner to track the status of his asset at all times.

Volvo Penta manufactures about 35,000 marine engines per annum in North America alone. "We are hopeful of extending our contract with them beyond 2008," Chakrabarty said.

Of the $10 million raised under the Series B funding, MobiApps has received $6 million from new investors like Intel Capital and the remaining $4 million was contributed by the existing investors including Partners Group. Beacon Advisory acted as financial advisors to the company for the equity funding, while the financing was led by UOB Venture Management.

The funds will be used to expand its market and accelerate its global sales and marketing, new product launches and next generation product development. The company had raised $8 million in its first round of investment. "The series B funding is a validation of our global delivery model and traction till date with leading customers," Chakrabarty said.

MobiApps will launch its advanced satellite transceiver products, deploying its marine telematics platform in North America and next-generation commercial fleet telematics products in the Asia Pacific region in 2006. It will also be enlarging its market operations in North America, West Asia, South East Asia and development centres in Bangalore and Singapore.

Chakrabarty said during the second quarter of 2006, the next generation satellite transceiver will be launched and during the second half of the year, it will launch vehicle tracking product in these markets. The company will also expand its product development centre in Bangalore by adding 50 more professionals in Bangalore.