Delta Partners Capital’s Delta Partners Emerging Markets TMT Growth Fund II is to invest up to EUR10 million in Virgin Mobile Central and Eastern Europe (VMCEE).
IFC, a member of the World Bank Group, the European Bank for Reconstruction and Development (EBRD) and CEE Mobile Capital (spearheaded by Dick Kiphart of KGC Capital) are also participating in the funding round.
VMCEE is an early-stage Mobile Virtual Network Operator (MVNO) providing broadband mobile services to the youth.
Delta Partners Capital, based in Dubai, is the investment arm of Delta Partners Group (DPG), an emerging markets-focused telecoms, media, and digital (TMD) advisory and investment firm. Delta Partners has approximately 200 employees operating from Barcelona, Bogota, Dubai, Johannesburg, Palo Alto and Singapore. Delta Partners Capital invests in growth capital opportunities in the TMD sector across Africa, Central and Eastern Europe, the Middle East, and South-East Asia.
Kai-Uwe Ricke, chairman of DPG, says: "The MVNO world is undergoing rapid transition as consumers move from a voice to a data-centric world. We are pleased to be able to partner with a global brand that is recognised as a consumer champion in order to launch creative, data-driven services for consumers in Central and Eastern Europe."
Alan Gow, CEO of VMCEE, says: "Having an investor with the industry expertise and MVNO-specific experience of Delta Partners Capital is of clear benefit to VMCEE. We look forward to working closely with our shareholders in order to capture the significant opportunity for growth that exists in Poland, Turkey, and across the region."
Transaction terms were not disclosed. The fund's capital will be used to fund the further growth and international expansion of VMCEE. Ricke will join the board of VMCEE and Boris Nemsic, executive partner at Delta Partners Capital and former CEO of Telekom Austria and Vimpelcom, will join the board of Virgin Mobile Poland.
