After picking up 20% in Spice Digital*, chipset manufacturer MediaTekit has made an undisclosed investment in mobile VAS startup MoMagic. The LinkedIn profile of MoMagic CEO Arun Gupta states that “MoMagic is a MediaTek Inc invested company.” We’d heard rumors about this investment from sources, and on being contacted by MediaNama, MediaTek declined to comment beyond the vague press release (below), on the nature of the arrangement between MediaTek and MoMagic, or even on what exactly MoMagic does.
It’s worth noting that Gupta was previously a Director at MediaTek’s India operations, and essentially heading its India business. So he knows MediaTek, its requirements and the MediaTek OS plans well. Also, being in the same building (see this and this), would help the companies work closely together.
From what we’ve learned from industry sources, MoMagic has the mandate of creating mobile applications for MediaTek’s platform, especially given an increase in adoption of the Android platform by local low-cost-handset manufacturers in India, which are key buyers for the MediaTek chipsets. This explains MediaTek’s investment in Spice Digital, as well as the global tie-up with Yahoo, both defensive moves.
A statement on MoMagic’s website reads “MoMagic works with MediaTek Inc to make MRE (MAUI Runtime Environment) platform accessible for Content Providing community. Any Content Developer who would like to develop MRE applications, we offer them all required technical and professional support and also provide them a platform to monetize their innovative content.”
* Disclosure: Spice Digital is an advertiser with MediaNama
MoMagic Technologies announces strategic partnership with MediaTek
In order to cater to the ever-increasing demands of Mobile VAS in the Indian market, MoMagic Technologies, a young Mobile VAS company in India has announced a strategic partnership with MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions. With the synergies of both companies, this business cooperation aims to boost the Mobile VAS market to a new high.
Indian Mobile market is growing at a rapid pace. As per market research, the Mobile VAS industry in India will enjoy over 100% growth in next 3 years. As the data needs of users are constantly growing, the Indian telecom providers are focusing more into Mobile VAS.
In 2011 MoMagic was incorporated with a vision to cater to the escalating demands of Mobile VAS for users across all segments with special emphasis on entry and mid-level segment. MoMagic has plans to offer innovative solutions using different mobile connectivity mediums of SMS, USSD, Voice, WAP, 3G & Mobile Applications.
To enable the huge VAS market of non-Java feature phones, MediaTek’s middleware technology, Maui Runtime Environment (MRE), will allow traditional feature phones to download and run applications like a smartphone does. With investments in MoMagic, MediaTek aims to accelerate the speed to market and reduce deployment cost for the whole ecosystem including local brands, Content Providers, Operators, etc.
Speaking on the occasion, Mr. Grant Kuo, MD of MediaTek India said, “The mobile VAS is a good opportunity for MediaTek and we plan to deliver the full spectrum of mobile VAS solutions in India which will promote in the future. With MoMagic, we now add another dimension to our ability to bring innovation to our customers, and at the same time, we are hoping to provide better value for our customers.”
Furthermore, Arun Gupta, CEO and Founder of MoMagic Technologies said, “Mobile VAS is an essential part of today’s telecom service. We have a vision to bring mobile VAS services to mass market by providing the users access to VAS services in every handset segment, including the entry level and in their own preferred languages. MediaTek is a leading Mobile IC solutions provider and we are very excited to get allied with them. We look forward to working together in collaboration to offer more innovative and affordable services for our consumers.”