Spice Mobility*, rather S Mobility, is picking up 10-20 percent stake in a Rs 200 crore Digital Incubation Fund that is being set up by the Associated Chambers of Commerce and Industry of India (Assocham), reports The Hindu Business Line. The fund, expected to be launched in July 2011, will look to provide seed funding to mobile technology startups.
Spice Mobility had reported total revenues of Rs 2016.6 crore for the financial year ended 31st March 2011. The company’s net profit for the period was at Rs 111.7 crore. It has also launched Saholic.com, an online mobile shop and announced its collaboration with Phonographic Performance Ltd(PPL) for Voice based Music Streaming Services (Mobile Radio).
The Fit With S Mobility’s Structure
Spice, according to the report, intends to roll out 15-20 projects using these funds, targeting projects based on mobility solutions for health, education, e-commerce and governance. S- Mobility had undergone a change in its organizational structure where its devices based business (Spice Mobiles), device retail (Hotspot, now called Spice Retail) and Mobile Value Added Services – Spice Digital (previously Cellebrum) and Spice Labs will be treated as a single entity.
Nikhil adds: This fits in well with an expected change in S Mobility’s – a switch to a modular structure which the company is expected to adopt, providing a go-to-market platform for several products. Investing in startups in related areas will allow the company to expand its portfolio of services for customers of telecom operators, something which OnMobile Global was also attempting with its Onmobile Developer Network. Still, we wonder how this might work with plans to make S Mobility a primarily Mobile Internet company.
Disclosure: Spice Digital is an advertiser with MediaNama