Flytxt Technology could seek investors to make exits for venture funds in 12-18 months

Flytxt Technology could seek investors to make exits for venture funds in 12-18 months
Flytxt

Flytxt features in http://www.mergermarket.com – 25th August 2011

Flytxt Technology Pvt Ltd, a privately held, India-based, mobile marketing technology provider, could seek strategic or private equity (PE) investors to prepare for an exit by existing venture investors in the next 12-18 months, said CEO Vinod Vasudevan. The incoming strategic or PE investor could buy out the shares by the existing venture investors in the company, he added.

The company had received about USD 10m from its venture investors in 2008, said Vasudevan. Its venture investors include Clifton Holding, IVC Venture Capital, RM Beteiligungsverwaltung, and Schnell Consult, he added.

Meanwhile, Flytxt is in the process of raising about USD 15m in a more immediate round of fund raise, which could be completed by January 2012. During this round, existing VC-backers could increase their investments on a pro-rata basis and a couple of new investors could be brought in, Vasudevan said. The point of this exercise would be to secure funds for expansion in the geographies where it has presence now as well as to increase the valuation for the VC exit down the line.

External investors own nearly 70% in the company, and the rest is with the founding shareholders and employees. Flytxt did not retain a financial advisor for the deal but would be receptive to hiring one for the upcoming raises.

Flytxt, which provides software services for mobile marketing, requires funds to expand in India, Africa, South East Asia and Middle East markets, said Mr.Vasudevan. We would focus on adding more operators and brands to the client list, he added.

The clients include four telecom operators in India and four telecom operators in Kenya, Nigeria, Sri Lanka, and South Africa, said Vasudevan. Its customers include Aircel, Reliance Communications, Virgin Mobile, Naspers, Grapevine, Eurostar, Innopath, and Kerasoft, as per the website.

Flytxt is confident about emerging market opportunities and would restrict our focus on India and Africa in the coming years, he said. We would not be interested in entering the developed markets in near future as well, he added. The EBIDTA positive Flytxt employs more than 150 professionals globally.

- Sounak Mitra, Financial Reporter, Mergermarkets