Allindia.com Ltd has concluded the sale of a 5 per cent strategic equity stake to Singapore-based Kawamin Pacific Pte Ltd. The company's total valuation, following the sale of stake, exceeds Rs 60 crore. The promoters of the company are in talks with several US-based companies for further sale of stake.
Speaking to reporters at a press conference in Calcutta yesterday, Arvind Agarwalla, who alongwith associates holds 95 per cent of Allindia.com, said, "The strategic sale of stake to Kawamin is the first overseas funding which has come to the company. We expect that this alliance and the others which may follow will fast-track our growth plans overseas."
Kawamin Pte managing director Hemant Amin will join the board of directors of Allindia.com Ltd. Kawamin's principal business is in ferro-alloys and primary market investments. The company has an annual turnover of $ 25 million and Allindia.com is its first infotech investment.
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During the finanicial 2000-01, Allindia.com aims to touch a turnover of Rs 7-8 crore, of which Rs 4 crore would come from its web consultancy division while ablout Rs 3crore would be from web services. The company plans to clock a Rs 1 crore net profit this year.
Last year, the company reported a turnover of Rs 1 crore and made a small profit. Growth this year would come from the several overseas initiatives and expanded web services, said Agarwalla.
For instance, said Sandeep Todi, chief executive officer, Allindia.com, "We plan to offer a host of customised services on our community website batchmates.com." The company plans to offer gift services and financial services to begin with, both of which will be available on the site in a couple of months.
The company is in talks with mutual fund companies, distributors and retailing companies for these services and will tie-up with them shortly, Todi said.