VC firm Canaan Partners to invest $120 Million in Indian IT cos
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New Delhi: Venture Capital firm Canaan Partners plans to invest up to $120 million over the next 2-3 years in the start up IT and telecom companies. "We will be investing another $80-120 million in Indian IT and telecom companies over the next 2-3 years. There is a huge potential for development in IT and telecom sector in India," Canaan Partners (India) Managing Director Alok Mittal told PTI. He said the company has invested a total of $30 million in two companies in the current year and is in talks with a few more firms for investment. Canaan Partners, a multibillion-dollar global venture capital firm, invests out of the $650-million global fund. "There is a huge opportunity in the consumer internet, e-Commerce, VAS technology and enterprise software products space as it is in development stage in India," Mittal said. He said with the start of new generation mobile telephony - 3G services - in India, there is enough scope for investment in telecom companies. "We expect an addition of 50 million 3G subscribers in India. We are investing in telecom companies in 3-5 years horizon," Mittal said. According to a research study, Indian IT sector attracted 25 deals worth $198 million during the July-September quarter, a rise from $160 million via 17 deals during the corresponding period last year. Services industry attracted the most investment as business and financial services companies saw seven deals attracting $49 million and consumer services companies got $71 million for nine deals during the September quarter of 2010.
Source: PTI
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