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Here is why New Call Telecom is considering investing Rs 1,920-crore in India

Here is why New Call Telecom is considering investing Rs 1,920-crore in India
Enterprise1 min read

To support its over-the-top (OTT) strategy in India, British internet service provider (ISP) New Call Telecom might invest around $300 million (Rs 1,920 crore) and acquire three, four new companies in the software and infrastructure segments.

CEO Nigel Eastwood told the Economic Times: "We have spent time over the last few months looking at a number of companies. We have got around eight-nine companies that we are talking to and three to four we would end up acquiring. We will be making announcements about two of them very shortly."

These acquisitions will be based on the company's app plan, he said, adding “Almost all of them are India-based companies. But one of the companies that we are talking to will be an interesting play coming to India. What we are looking to acquire complementary assets."

New Call acquired messaging app Nimbuzz and Delhi-based Wi-Fi Ozone Networks in 2014. The British company also held discussions with a number of fixed-line broadband companies, but the negotiations failed due to valuation issues.

Regarding investments, he said, "We see investors now really warming toward what we are doing and really validating the opportunities. We have gone way beyond our initial expectations because that was just seed capital. And, we have got enough capital for what we want to do."

Eastwood said the company is no longer actively hunting for a fixed line company as its strategically focused on the OTT plan.

New Call is consolidating India operations from its office in Gurgaon. It will be hiring 100 people in the next six to 12 months to support the operations of all three companies.

"We are acquiring other businesses and incubating new ideas and that's why we need people. That's my vision behind growing our business in India (and) getting behind the Digital India initiative," Eastwood said.

New Call's acquisition of Ozone Networks is awaiting Foreign Investment Promotion Board (FIPB) approval. The application has been deferred a number of times.

(Image: Indiatimes)

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