One97 Mobility Fund which had invested Singapore$ 1 million (around $820,000 at the time of the funding) in TheMobileGamer, a Singapore based mobile social gaming company, last year, has now exited from the venture, as the company has now raised Singapore$ 1.8 million from telecom giant, SingTel, for a 35.54% stake, as reported by SGEntrepreneurs. Further, Japanese telecom service provider and communications company Softbank will also reportedly invest in TheMobileGamer.

Speaking with MediaNama, One97 MD Vijay Shekhar Sharma said that they decided to exit as a good price was offered. On One97’s role in the growth of the company, Sharma said that the One97 Mobility fund helps early stage entrepreneurs in operations, and helps them in taking decisions, but it’s ultimately about the entrepreneur’s capability when it comes to determining its success.

Founded by Alvin Yap, TMG is profitable, and had previously raised around Singapore$ 500,000 from Innosight Ventures. The company focuses on South East Asia and India and offers KotaGames, a web-based mobile gaming service. It also offers social mobile games on mobile community networks like mig33 and has a user base of 4 million. The company claims that players browse up to 80 million pages per month on its games and that 36% of it’s user base pays for games on a monthly basis.

In the past, One97 has invested in two other Singapore based companies
– mobile security firm TenCube, which was acquired by McAfee,
– data roaming provider LeapSky Wireless.

Update: A copy of the stock exchange announcement-
SINGAPORE TELECOMMUNICATIONS LIMITED (Incorporated in the Republic of Singapore)
Company Registration Number: 199201624D
ANNOUNCEMENT PURSUANT TO RULE 704 OF THE SGX LISTING MANUAL ACQUISITION AND SUBSCRIPTION OF SHARES IN THEMOBILEGAMER PTE. LTD.

Singapore Telecommunications Limited (“SingTel”) wishes to announce that its wholly-owned subsidiary, SingTel Idea Factory Pte. Ltd. (“SingTel Idea Factory”), has entered into:
(i) a conditional sale and purchase agreement to acquire a 35.54% interest in the share capital of TheMobileGamer Pte. Ltd. (“TMG”) from certain of its founding members for a cash consideration of approximately S$1.8 million (approximately US$1.5 million) (the “Acquisition”); and (ii) a conditional share subscription agreement to subscribe for an additional 11,481,056 new Series B preferred shares at S$0.107 per share in the share capital of TMG (the “Share Subscription”).

TMG is a platform provider that is in the business of aggregating, distributing, licensing and developing mobile gaming software. SOFTBANK CORP., one of the leading Japanese internet companies providing mobile, fixed line, and internet contents services, is also a co-acquirer under the Acquisition and a co-investor under the Share Subscription under the same terms.

Following completion of the Acquisition and the Share Subscription:
(i) Softbank and SingTel will hold an aggregate interest in TMG of approximately
41.08% each;
(ii) the issued and paid-up capital of the preferred shares in TMG will increase from
S$794,706.00 to S$3,251,651.98; and
(iii) the issued and paid-up capital of the ordinary shares in SingTel Idea Factory will increase from S$3,464,600 to S$6,784,600 via the allotment and issue of 3,320,000 ordinary shares at S$1 per share to SingTel.

The consideration payable for the Acquisition was arrived at on a willing buyer-willing seller basis, based on, inter alia, an assessment of TMG’s business prospects. As at 31 December 2011, the audited net asset value of TMG was S$224,019.

Disclosure: One97 Communications is an advertiser with MediaNama