Kerala-based mobile VAS company MobME Wireless has postponed its IPO plans and raised undisclosed amount of angel funding, the company’s founder and CEO Sanjay Vijayakumar has told Financial Chronicle.
Vijayakumar said that they have raised investment from a few angel investors who were planning to buy their shares through the IPO, although he hasn’t disclosed any information on the capital raised or the investors in this round. A TechCircle report cites sources to say that MobME has raised $3 million. We are awaiting for Vijayakumar’s response for more details on this.
MobME had first stated plans of raising capital through an IPO rather than choosing venture capital funding in December 2012. It had filed its draft red herring prospectus with the NSE’s Emerge SME platform to raise around Rs 25 crore in February 2013, by offering 705,600 equity shares for the face value of Rs 10.
In April 2013, it had received an in-principal approval from the National Stock Exchange (NSE) which is valid until April this year, following which the company will have to re-draft its draft red herring prospectus (DRHP) for an IPO.
Vijayakumar had told Medianama that the company plans to use the capital raised to implement its digital signature pilot projects in Kerala, which is expected to be rolled out by this year. He had also mentioned that they are planning to shift from the NSE Emerge platform to the main stock exchange in a year or two.
MobME currently offers telecom products and services to operators, brands and the government. This includes network solutions for telcos to manage SMSC, USSD, IVR and Outbound Dialler (OBD) services, value added services for telcos & brands and hosted enterprise solutions across SMS, voice and data platforms for brands, businesses, banks and government institutions.
However, its core focus now seems to be its mobile digital signature solution Mobile Express, for which it had inked agreements with the mobile authentication and digital signature solution provider Valimo and digital security company Gemalto.
MobME was using Valimo’s Mobile ID solution and Gemalto’s UpTeq PKI (Public Key Infrastructure) SIM cards to develop a secure authentication channel which enables legally binding digital signatures on transactions directly from mobile phones. The company claims to have tie-ups with Central Government and State Government Institutions, all major telcos, largest banks in India and retail merchants for this initiative.
For the financial year ended March 31, 2012, MobME had reported a total income of Rs 23.10 crore and net profit of Rs 5.60 crore, up from Rs 3.46 crore revenue and Rs 1.06 crore profit reported in the period ending March 31, 2008.