Malaysia based Astro group has bought 50% stake (for $5million) in Mogae Digital, a company promoted by Sandeep Goyal and Tanya Goyal, who are the Indian JV partners of Japanese giant Dentsu, the single largest ad agency in the world.
What’s interesting is that Mogae Digital’s website Mogae.com is still under construction – and that raises tons of questions on valuations (i.e. if the numbers are right).
The joint venture has lined up couple of product launches, including a social networking portal for mobile phones and a local search engine, this year [ET].
“Mogae Digital has the creative understanding required to speak to diverse audiences in the emerging new media space. The products that they have created are versatile and effectively engage consumers at different levels. Given Astro’s already large interest in the media space, Mogae Digital will be a good addition to our bouquet” – Astro.
Well, how does that translates to building a local search expertise?
It seems local search market is the next hype in the Indian market – everybody seems to have one!
Comments?
Update: It seems there is major confusion regarding the $5mn amount. E4M reports – “The Astro Group of Malaysia has picked up a 50 per cent stake in Mogae Digital Pvt Ltd, promoted by Sandeep and Tanya Goyal. Astro Group will invest up to $5 million in the venture.”
I think this is what make’s a few aspiring entrepreneurs in India disillusioned, and they end up harming themselves more than making a credible product that adds value for the consumer. Some of the valuations for startups (read: minglebox) are really baffling and only lead to a fake sense of security in entrepreneurs, as we tend to think on the lines that “If their shitty product can get funding at that valuation, ours can surely beat that number and raise money” ! This is the start of the doom for the startup, as you’re now more focussed on raising money and beating the other guy, just because your product is far superior (or as u believe it to be) and not focus on building real value for your customers.
dude i think this is all cooked up stuff… the fact is that you get funded if your friend is a VC or if you happen to be an IITian or an IIM grad. others who get funded who are there to rotate cash. The VCs will fund you if your brother or father knows them… they will fund you and keep a margin on the commissions for making the fund available. look at techtribe, minglebox etc. Also one should remember that the funds that indian VCs are floating around is actually money belonging to someone else. The india VCs act as middle men and get commissions and bonuses for investing in these companies