Mobile seller seeks PE investment

Chennai: Bangalore-based mobile phone retailer Sangeetha is in talks with private equity (PE) companies to infuse about Rs 100 crore into the company in order to support its expansion plans. The company is in the process of expanding its chain of outlets in South India and may complete the funds infusion by March 31, according to Mr L. Subhash Chandra, Managing Partner, Sangeetha.

Currently a closely held business, the company will shed about 26 per cent stake to the PE investors, Mr Chandra said at a press conference today.

Sangeetha plans to have over 100 outlets across South India by December next and eventually set up shops across India. It has earmarked close to Rs 10 crore to set up 20 outlets in Chennai by March 2008 after which it will look at other cities in Tamil Nadu and Kerala, Mr Chandra said.

The company has 20 outlets in Karnataka and 9 in Andhra Pradesh and will expand these numbers too. It owns all its stores but is considering a franchisee model in future.

When asked how Sangeetha would tackle competition from other retailers in Chennai , Mr Chandra said these chains had adopted discounted prices as their USP, while Sangeetha would focus on value addition.

“We have tied up with i-Mint loyalty programme and online DVD retailer Seventymm to offer innovative schemes for customers.”