Spice Mobility has appointed Dilip Modi as executive chairman and director, reports VCCircle. Modi will be additionally responsible for business operations and expansion of the company across India. Prashant Bindal, the current CEO will not hold the position anymore.
Modi took over from Bhupendra Modi in February 2014 and helped the company set up Spice’s mobility business in mobile devices, VAS and mobile retail. According to the VCCircle report, he was appointed as executive vice chairman in 2010 and managing director of Spice Global in 2011.
Financials: Last month, we reported that Spice Mobility’s mobile devices business continued to face losses, although to a lesser extent than before. The segment posted a net loss before tax of Rs 5.95 crore for the quarter ended September 30th 2015, compared to a loss of Rs 13.86 crore in the previous quarter. Year-on-year, the company’s losses decreased as it had reported a loss of Rs 9.59 crore the same quarter last year. The segment reported total revenues of Rs 436.06 crore for the quarter, registering a marginal 1% growth from Rs 431.8 crore the preceding quarter. On a year-on-year basis, the revenues declined by 12.3% from Rs 497.17 crore in the corresponding quarter last year.
Mobile devices business continues to dominate Spice Mobility’s revenues, accounting for 87.8% of the company’s revenues for the quarter that stood at Rs 496.5 crore. The mobile devices segment accounted for 90.9% of the company’s revenues in the same quarter last year and 88.03% in the preceding quarter.
Stake in Creative Functionapps: In July Spice Digital, a subsidiary of Spice Mobility, acquired 26% stake in telecom technology solutions providers Creative Functionapps Lab for an undisclosed amount. Following the deal, Creative Functionapps would become an Associate Company of Spice Digital. With Spice Mobility’s mobile devices business continuing to post losses, the acquisition of Creative Functionapps could be the company’s attempt to prop up its services business, which has been steadily increasing its share in the company’s total revenues.