The International Finance Corporation (IFC) along with Argonaut Ventures and an unknown private equity player together picked up a sizeable stake in Midas Communication Technologies Private Ltd, a Chennai-based telecommunications equipment company which designs affordable and appropriate telecom access solutions for both urban and rural areas in emerging markets.
Of the total funding amount of $25 million, IFC is planning to infuse $12 million as equity investment while Argonaut Ventures will be making $3 million equity investment. The remaining $10 million will be invested by a new equity investor. Debt financing has also been arranged to satisfy additional funding requirements, said industry sources.
Midas is planning to utilise the said funds to scale up its operations by developing its family of access corDECT products while targeting new clients in other low-income, low tele-density countries; expanding market reach through increased sales and marketing efforts; deepening existing customer relationships and continuing R&D on new promising technologies, the sources added.
According to the sources, the company?s flagship product is BroadbandcorDECT is based on the European Digital Enhanced Cordless Telecommunications (DECT) standard.
The company is also about to deploy a GSM access solution that is specifically designed for high modularity, low power, high reliability and low subscriber densities. It is also developing a 4G voice and data platform based on the IEEE 802.16e standard (Wimax-e) that will have applications for both urban and rural voice & broadband data requirements.
The company also offers some wireline products, namely Ethernet switches and ADSL and Ethernet access systems that connect the backhaul to residential and corporate buildings, the sources added.
The project is expected to positive impacts include benefiting consumers in rural areas: help expand access to telecoms in emerging markets including rural areas: support an Indian IT product company that is developing core intellectual property, the sources added.