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Navini Networks gets $30 M in series D
By siliconindia staff writer
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Thursday, 01 July 2004, 19:30 IST
Navini Networks Inc., whose technology allows high-speed wireless access in places where DSL or cable services aren't available, said it has secured $30 million in Series D financing that will support product development and continued international expansion.
Navini's funding is now $115 million. Since the Series C round, which brought total funding to $91 million, the company has retired $6 million in debt financing and consolidated it into a working capital facility.
The Series D round was led by Lehman Brothers Venture Partners, a venture-capital arm of the Lehman Brothers financial concern. Previous investors Sequoia Capital, Austin Ventures, Granite Ventures and Sternhill Partners also participated, at pro rata.
Navini wouldn't disclose whether the Series D was an up round or a down round. However, it was oversubscribed, with an original funding target of $20 million to $25 million, according to Chief Executive Alastair Westgarth.
The first tranche of the round closed in early May, pulling in most of the money. The second tranche closed Monday.
As a result of the funding, Stewart Gollmer, with Lehman Brothers Venture Partners, is taking a board seat.
Navini, founded in 2000 and based in Richardson, Texas, has had an overseas presence for some time. The Americas, Asia-Pacific and EMEA -- or Europe, Middle East and Africa -- each deliver roughly one-third of its revenue, said Westgarth.
Navini's products already are deployed, on either trial or commercial bases, in 29 countries. Those include Malaysia, Ireland, Spain and Australia. It also has sales staff in Hong Kong and the U.K., and research and development operations in India.
The bulk of Navini's manufacturing takes place in China, and the company has research operations there. In addition, after retaining a few on-the-ground staff there for several years, Navini officially opened a location in China in April, focused on Asia-Pacific business.
Some analysts believe that while the cellular wireless market in China is substantial -- given cellular operators such as China Unicom and China Mobile -- there is a potential market for broadband wireless services, such as those supported by Navini's base stations, modems and management systems. The company's portable products let users send and receive data at broadband speeds and don't require users to be fixed in one spot.
According to Shiv Bakhshi, a wireless network infrastructure analyst with IT research firm IDC, wireless operators in China may be inclined to offer wireless broadband as one more communications option for their customers.
At the same time, wireline companies might view wireless broadband as a way "to appropriate part of the wireless value chain," Bakhshi said.
In April, Alcatel, the communications applications provider, announced it had signed a deal with Navini in which it would distribute Navini products under its own brand name.
"Given Alcatel's reach and Alcatel's ability to provide 24/7 support, that [deal] bodes will for them," according to Bakhshi.
He also noted the company's technology is non-line-of-sight, meaning the data can reach the user even if there are objects in the transmission path.
Among Navini's rivals are venture-backed companies IPWireless Inc. and Flarion Technologies Inc., according to Phil Marshall, a wireless analyst with Yankee Group, an IT research firm.
IPWireless has raised over $150 million in venture capital and is backed by firms such as Bay Partners and DCM - Doll Capital Management. Flarion, with over $100 million raised to date, is backed by Bessemer Venture Partners, Cisco Systems Inc. and others.
Besides its Series D investors, Navini's investors include Alcatel Ventures, Crimson Ventures, Granite Ventures and Intel Capital.
Navini's full-time employees number about 124, with 100 in Richardson, 19 in China and five in India. Navini said in October it had laid off about 30 people, mostly research and development staff.
Westgarth said that the company is hiring.