UK-based telecommunications service operator New Call Telecom is set to acquire a 70% stake in Netherlands-based mobile messaging service Nimbuzz for about $175m, the Economic Times reported on Sunday.
Nimbuzz raised $25m across two rounds in 2007 and 2008 from investors including internet holding company Naspers, Mangrove Capital Partners and HV Holtzbrinck Ventures, the corporate venturing arm of publisher Georg von Holtzbrinck.
Holtzbrinck Ventures has since exited Nimbuzz, and although it has not disclosed when the exit took place, its three-to-seven year rule for investments make it likely it sold its stake to New Call as part of the deal.
Nimbuzz provides a service that encompasses free calls, messaging and file sharing on mobile devices. Despite its European headquarters, Nimbuzz around 20% of the company’s 200 million customers come from the Indian market.
Jerome Booth, chairman of New Call, told ET: “We see huge potential for new revenue streams and very large expansion of broadband in India through this.”
Although Nimbuzz’s expected revenues for 2014 total only $30m, its revenue has also doubled over the past three years and the online messaging service has heralded some huge deals in recent times, including WhatsApp and Viber.