VAS Deal – Mobile2Win to merge with Altruist

Another day, another VAS deal. It seems mobile VAS is the most happening segment right now (see: Canaan Partners Invested in mCarbon, Microsoft India acquired 20% stake in Affle).

Mobile2Win has merged with Altruist group . Altruist provides voice/web based Value Added Services, BPO/IT and Interactive Communication solutions to Carrier, WASP, ISP, CSP and Corporate clients; and will soon be launching voice based services like,,

“M2W’s received funding from Norwest Venture Partners (NVP), Nexus India, Softbank China and Silicon Valley Bank, while Altruist was co- founded by Dheeraj and Anuj Aggarwal.
Investors in M2W will get shares in Altruist and Aggarwal brothers will get a stake in M2W.”

“M2W, which works with all the 11 telecom operators in India, had revenues of around Rs 35 crore in FY08 while the number for Altruist was over Rs 165 crore. “With this consolidation, the group turnover will exceed Rs 200 crore. Jointly, we expect to close FY09 with around Rs 350 crore in revenue.” – ET

What’s interesting about this deal is the overall benefit to both the parties : M2W is into mobile marketing, while Altruist creates voice based VAS services which are marketed and branded by operators (they have clients like Airtel/Tata Tele/Idea Cellular).

Any specific inputs on the rationale for this deal? M2W, inspite of raising so much of cash (Nexus invested $5mn in M2W), couldn’t sustain on it’s own?

Also see: Is Voice the next Kinng in Mobile VAS space? | Mobile VAS in India: Numbers that you should know