ET BureauNEW DELHI: Lava International will close its first fundraising round of Rs 100 crore within the next two quarters, the same time during which India’s third-largest smartphone maker expects to begin assembling its first set of devices in India.
The company has appointed EY (formerly Ernst&Young) as consultants to raise funds from external investors through equity placements, which will be used to expand into potential markets, chairman and co-founder Hari Om Rai told ET.
“In the next one-two quarters, the first level of investments of roughly about Rs 100 crore will come in,” Rai said. “We are evaluating proposals but we’re looking for shared values in the investors. We are in discussions with investors from India and overseas,” he added.
The Noida-based company, which sells Lava and Xolo brand of devices in India, is yet to decide on the quantum of equity it will dilute in exchange for the investment. It clocked revenue of . Rs 4,232.4 crore from April till November 2014, 61% of which came from smartphones.
ET had reported earlier that the Noida-based handset maker plans to raise Rs 300 crore for 20% equity. Rai did not comment on the same.
With an 8% share of India’s smartphone market, Lava is one of the fastest growing handset vendors in the country, as per IDC India data for the July–September period where the overall market witnessed on-quarter growth of 27% to 23.3 million devices.
On Tuesday, it launched the Iris Fuel 60 with high powered battery for Rs 8,888. Having clinched the No 4 spot in the overall mobile phone business surpassing Karbonn, the company now aims to begin assembling smartphones before March 2015. Industry insiders feel that starting assembling of smartphones and basic level manufacturing can provide the required stimulus for achieving scale.
The company has appointed EY (formerly Ernst&Young) as consultants to raise funds from external investors through equity placements, which will be used to expand into potential markets, chairman and co-founder Hari Om Rai told ET.
Elevate Your Tech Prowess with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| IIM Kozhikode | IIMK Advanced Data Science For Managers | Visit |
| IIT Delhi | IITD Certificate Programme in Data Science & Machine Learning | Visit |
| IIM Lucknow | IIML Executive Programme in FinTech, Banking & Applied Risk Management | Visit |
The Noida-based company, which sells Lava and Xolo brand of devices in India, is yet to decide on the quantum of equity it will dilute in exchange for the investment. It clocked revenue of . Rs 4,232.4 crore from April till November 2014, 61% of which came from smartphones.
ET had reported earlier that the Noida-based handset maker plans to raise Rs 300 crore for 20% equity. Rai did not comment on the same.
With an 8% share of India’s smartphone market, Lava is one of the fastest growing handset vendors in the country, as per IDC India data for the July–September period where the overall market witnessed on-quarter growth of 27% to 23.3 million devices.
Discover the stories of your interest
On Tuesday, it launched the Iris Fuel 60 with high powered battery for Rs 8,888. Having clinched the No 4 spot in the overall mobile phone business surpassing Karbonn, the company now aims to begin assembling smartphones before March 2015. Industry insiders feel that starting assembling of smartphones and basic level manufacturing can provide the required stimulus for achieving scale.
Get Unlimited Access to The Economic Times
