AAA MediaTek pays for Spice Digital’s taste

MediaTek pays for Spice Digital’s taste

Taiwan-based semiconductor company MediaTek has invested $20m in the India-based mobile services provider Spice Digital. News agency Reuters has cited the size of the stake obtained as 10%.

MediaTek, which makes semiconductors used across a range of electronic devices including wireless communication and global positioning systems, has invested in a series of companies this year, acquiring Taiwan-based chip maker Ralink Technology and investing in China-based companies Goodix and NetQin.

Spice Digital, formerly known as Cellebrum, provides a mobile value added service (mVAS) which incorporates music, commerce, information and educational services, often via mobile applications. Spice Digital was incorporated into the finance, entertainment and mobile telecommunications company Spice Global in 2000, under its previous name, and has over 30 million subscribers to its services in a market estimated to have more than 700 million mobile subscribers overall.

Ming-Kai Tsai, chairman of MediaTek, said: "The mobile internet [market] presents a wealth of opportunity for MediaTek and we believe India’s IVR [interactive voice response] and mVAS market, where Spice Digital’s core business lies, will continue to grow. Through this investment in Spice Digital, we are hoping to capitalise on its market potential and reinforce its strong operator relationship and leading position in India, South East Asia, Africa and the Middle East."

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