India-based One97 Communications, which provides services for mobile phones, has started a $100m corporate venturing fund, just ahead of peer OnMobile.
One97 is preparing its own flotation later this year after investment from Intel Capital, the world’s most influential technology corporate venturing division, and Hong Kong-based venture capital firm SAIF Partners.
SAIF will also manage the One97 Mobility Fund alongside the services provider to invest between $500,000 and $5m in seed to growth-stage companies focused on the Indian mobile equipment market.
Vijay Shekhar Sharma, chairman and managing director of One97, will manage the fund, alongside One97’s general manager, Ishan Gupta, and two people from SAIF: Ravi Adusumalli, the VC’s head of India, and vice president Deepak Gaur.
However, the bulk of the money in the new fund is committed from On97, according to local news provider Businessworld.
One97 said this included device applications, location-based services, mobile commerce, mobile marketing and advertising, video and content aggregation.
The fund has already invested in two firms: Oorja Mobile Services for mobile customer analysis and Singapore-based TenCube, which develops smartphone security technology.
India-based OnMobile has also been preparing to launch a $50m to $75m corporate venturing fund, according to Businessworld, having made its first investment in October in mobile services company Ver se Innovation, alongside US-based VC Matrix Partners.
In October, Arvind Rao, executive chairman of OnMobile, said: "We see value added services as an internet-scale market which is in its early stages of development. Ver se is the first OnMobile incubated and funded company."
The Indian mobile subscriber market passed 600 million last month, according to the local regulator.