Mumbai-based software solutions firm NetCore Solutions Pvt Ltd, founded by Rajesh Jain, has acquired Greynium Information Technologies Pvt Ltd, which owns the OneIndia.in internet portal, for an undisclosed sum. NetCore feels Greynium’s online businesses will complement its mobile business.
Rajesh Jain, the founder and managing director of NetCore, had earlier invested in Greynium through his personal venture capital fund, Emergic Venture Capital, said a company statement.
Greynium is a market leader in the Indian languages Internet portals space and has a growing position in the online Indian classifieds space with its Click.in portal. NetCore is one of India's largest digital communications companies with its email and SMS solutions being used by over 2,000 companies, a company statement said.
Following this buy, NetCore plans to create solutions that can be accessed simultaneously from mobile and internet. The company is also interested for acquisitions in the direct-to-consumer and direct-to-enterprises services space.
Abhijit Saxena, CEO, NetCore Solutions, told VCCircle, “Given that local languages are crucial for India, this strategic acquisition will position NetCore well in building both reach (across internet and mobile) and revenue (from ads, lead generation, content subscriptions and commerce),” Saxena added.
Apart from the existing advertisement revenue stream from OneIndia and its classified space Click.in, NetCore plans to create a combine application for advertisers and integrate e-commerce and m-commerce into a single platform.
“Building a large digital consumer base across web, SMS and the mobile internet will allow NetCore to monetise this base effectively not only across both media as also create opportunities around e-commerce and m-commerce,” Saxena reasoned.
Netcore, through its mobile email services MyToday, is engaged in SMS business, and believes the acquisition of Greynium will help it grow further by leveraging latter's user base. It currently has over 4 million users, while Greynium claims a run rate of over 6 million unique visitors across all its language portals monthly. OneIndia provides news in English, Hindi, Tamil, Telugu, Kannada and Malayalam.
NetCore is a profitable company and is keen on raising venture capital funding to fuel its expansion plan. The company is also scouting for options for acquisitions in the direct-to-consumer and direct-to-enterprises services space, and targets around 2-3 deals by the end of this year.
There has been a lot of consolidation happening in the mobility space in India. ValueFirst, a Gurgaon-based company in online mobility space, acquired two firms in the last two months that include Packet Shaper Technologies Pvt Ltd and Tagg.in. It is also actively looking for more acquisitions in this space.
“I see a lot of consolidations happening in the industry in the coming years. The smaller companies with interesting product offering will be acquired by big players as those companies don’t have enough monetising capability,” Saxena concluded.