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TA Associates invests USD45m in Micromax Informatics

TA Associates, a growth private equity firm, has made a minority investment of USD45m in Micromax Informatics, a mobile handset provider in India.

Founded in 2000 as a telecom equipment distributor, Micromax entered the mobile handset market in April 2008.

Micromax is now the third largest handset provider in India, as measured by volume.

The handsets are sold through more than 45,000 retail points in 120 cities across the country. Micromax is headquartered in New Delhi.

“As a fast-growing, profitable company in a growth industry, Micromax ideally fits TA’s investment profile,” says Naveen Wadhera, director, TA Associates Advisory, who will join the Micromax board of directors. “The company’s emergence as a leading mobile handset brand in only 18 months is remarkable. This is one of the largest technology investments in India in the past year, and will provide additional support to help continue the company’s growth trajectory.”

“We are pleased to enter this partnership with TA,” adds Rajesh Agarwal, managing director, Micromax Informatics. “TA offers a unique combination of financial support, strategic guidance and a significant network of contacts, as well as a wealth of experience in the communications sector. We welcome the firm as our first institutional investor, and anticipate a successful and mutually beneficial relationship.”

According to Macquarie Research and Grant Thornton, the Indian wireless market is one of the fastest growing in the world, adding ten to 15 million mobile subscribers per month. The number of subscribers has grown from approximately 100 million in 2006 to more than 400 million today and is expected to grow to over 800 million over the next three years.

A portion of the investment is subject to certain conditions.

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