GSO Capital Partners which acquired Velti’s mobile marketing business in India, US and UK in January this year, has now officially launched a new entity mGage which will offer mobile marketing solutions in these regions.
It’s worth noting that mGage was previously Velti’s mobile campaign management platform which was launched way back in January 2010. This platform allowed brands, agencies, publishers and carriers to manage their mobile advertising and marketing campaigns. It enabled them to plan, execute, track and optimise advertising from a single platform.
Velti had earlier told Medianama that it would be focusing on mobile marketing solutions and brand presence business for large FMCG brands in India by using the company’s experience from other geographies like the UK & US. It had stated plans to focus on messaging solutions (A2P messaging), Voice, USSD and Mobile Apps.
Velti had also mentioned that majority of its revenues comes from BFSI, DTH and the government sector with clients like SBI, HDFC Bank, ICICI Bank, Citi Bank, Bank of Baroda, NSE, Dish TV, Tata Sky, UIDAI, NIC and DAVP among others and it would continue to focus on the enterprise segment in India.
Offerings: As per mGage website, the company will offer messaging solutions like Communicate Pro which allows users to send and receive messages using SMS, push notifications, email, outbound dialing, IP messaging and social media channels.
It also allows brands to build digital passes (via Apple Passbook) and microsites for coupons and offers enterprise-grade APIs which can be connected to the company’s back end to manage their user lists, messages and campaigns from their own systems. Besides this, it offers solutions for behavioural analytics, customer lead generation and mobile community building among others. The company will also offer mobile payment solutions and digital marketing solutions in the United Kingdom.
Velti-GSO Partners Sale: Velti had agreed to sell its India, US and UK mobile marketing businesses and certain part of its US-based advertising businesses to affiliates of GSO Capital Partners LP, the credit division of the PE firm Blackstone in November 2013 and completed the sale three months later, in January this year.
Velti India President and CEO Jay Sheth (who is now mGage CEO) had mentioned that this sale will provide the company with greater financial stability and resources needed to grow the business.
This sale was due to a significant increase in losses which had increased to $130 million at the end of Q2 2013 as compared to a net loss of $17.7 million at the end of Q2 2012. Velti had mentioned that it was also facing difficulties in collecting payments in some countries, particularly in Greece and Cyprus which had contributed to its disappointing results. Velti got delisted from NASDAQ in November 2013 and had shut its Mobclix ad exchange business in the same month.
Corrigendum: GSO Capital Partners has launched mGage and not Velti. The article has been modified accordingly.