From our sister site ContentSutra: The ET last week reported that Tom Online, the majority owner of Indian mobile and online gaming firm Indiagames, is looking at exiting the gaming company. It had said the online giants like Yahoo, Google and Amazon, could be in the race for acquiring a controlling stake in Indiagames. There is a Reuters follow-up on this report too.
We spoke to Vishal Gondal, Founder and Director of Indiagames, to get his reaction. He would, of course, not talk about Tom Online’s exit plans. But he said the company would be raising about $20-25 million shortly to bankroll their market expansion plans. This could be in the form of venture capital or strategic investment. “There is a lot of interest. We are talking to many VC firms and strategic partners.” (Ed: Strategic partners could include anyone like Yahoo, Google and Amazon or eBay).
He said the company needs that kind of money since it’s going after the B2C market in a big way. Consumers can go to Indiagames portal and buy games irrespective of what operator they use for internet connection. Indiagames had recently launched Games on Demand in Delhi with Airtel, in Mumbai with MTNL and with other access companies like YOU Telecom (formerly Iqara).
But is Tom Online exiting Indiagames? Says an industry analyst: “Any investor would be open to exit if they get a good valuation.” (Our take: Tom Online could exit if they get a good price). ET had speculated that the enterprise valuation for Indiagames is around $70 million. That’s a little less than three times the valuation of Indiagames in 2004, when Tom Online bought close to 80 percent in the gaming company for nearly $18 million. Tom Online’s stake came down to 62.42 percent, following Cisco and Macromedia’s (now owned by Adobe) acquisition of 10 percent and 8.18 percent, respectively, in Indiagames.
Related:
—Indiagames Close To Raising Another Round Of VC Funding