Mobile Value Added Service (VAS) provider Onmobile is planning to for an IPO of Rs. 500-600 crore during this fiscal, reports the Business Standard. However, one really can’t be sure of the numbers or valuation; in case of Onmobile, there were several speculative reports about its funding. Revenues are apparently around Rs. 210 crore, and industry insiders tell us that a fairly large chunk of this comes from voice portals they run for mobile operators for around a 15-25 percent share. The company is apparently valued at around $300 million. We’re also told that the company has cash and isn’t struggling to make ends meet, but there are two reasons for the IPO: the first is that they’re looking for an expansion into global (and higher margin) markets.

Secondly, it’s a classic exit for a VC: Onmobile apparently has a number of investors that it has gathered since its incubation seven years ago at Infosys (around 14 percent stake), and this will be payday for them. Some money will also be used for consolidating its position and expanding its portfolio in the mobile VAS segment. The Business Standard report, however, claims that the IPO is to help the company expand into GPRS and WAP services.

In October last year, OnMobile had raised $27.8 million in its second round of funding from a group of investors including Deutsche Bank, Goldman Sachs and Polygon Investment Partners, for a combined 10 percent stake, thus a valuation of $278 million. In 2000 Onmobile had raised $18 million from Argo Global Capital and HNQ Asia Pacific in its first round of funding. Founders and company employees apparently own 40-45 percent stake.

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