MobileNXT, mobile retailer which started operations in April this year with initial funding of $5 Million is now planning to raise another $10 Million in Venture Capital funding.
Mobile NXT CEO, Vijay Menon said that,
At present, the firm’s exclusive outlets are located in Gurgaon, Mangalore, Ahmedabad, Kolkata, Hyderabad, Mumbai, Hubli and Bangalore. We have ventured into three business concepts – standalone stores, store in stores and virtual stores. MobileNXT will have 31 stores across the country by March 2007 and 170 stores over the next 3 years.
With falling margins and ARPU, it won’t be an easy ride for Romy Juneja (MobileNXT founder) when he has competitors like Mobile Magic (gobroadband Covered them last week), which has organically grown and its promoters having richer experience in running mobile retailing than Romy. What India needs is an electronic retailer the size of Best-Buy 🙂
In another development, Providence Equity Partners may invest Rs3000 crores in Idea cellular to get 33% stake from Birlas. This deal is likely to happen at the same valuation at which Birlas bought Tata’s stake in Idea. Group Company Aditya Birla Novuo, holds controlling stake in the venture through which Kumar Birla chairs the Idea board. Is it a good idea ? 😉
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