VC firm Canaan Partners to invest USD 120 mn in Indian IT cos

VC firm Canaan Partners to invest USD 120 mn in Indian IT cos

"We will be investing another USD 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 USD 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 USD 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 USD 198 million during the July-September quarter, a rise from USD 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 USD 49 million and consumer services companies got USD 71 million for nine deals during the September quarter of 2010.

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