Mobile application developer Robosoft Technologies has raised Rs 22 crore from Kalaari Capital.
Apart from building apps for clients, the Udupi based app maker also creates its own apps through 99Games and Global Delight.
This is the first round of funding for the company and Kalaari Capital will now hold a minority stake in the Robosoft, the company said in a statement. Kalaari had earlier invested in Onward Mobility.
The app company has made popular apps such as Camera Plus and Game Your Video for iPhones. Rohit Bhat, the CEO of the company said that the funds would be used for global expansion and strengthening sales, design and product teams. The company was set up in 1996 by Bhat.
The fast-growing mobile app market has created an opportunity for India-based app development companies. The Indian app market is estimated to have reached Rs 1,800 crore in 2012 and the global market is estimated to grow to $25 billion (about Rs 1.48 lakh crore) in size by 2015, according to a MarketsandMarkets report.
2 years back, Sourcebits raised $10mn from Sequoia Capital and IDG Ventures and has expanded in US market.
The Economic Times reports that Robosoft has revenues of Rs 50 crore and has employee strength of over 400.
The Robosoft Story
Robosoft founder, Rohith Bhat shared the startup journey at NextBigWhat’s app conference. Started as a Mac Contract Development House in 1996, Robosoft has come a long way.
Why Roboosft Needs Funding?
Given that the company has revenues of ~$10mn, why would they raise $4mn?
Rohith Bhat, founder and CEO of Robosoft clarifies:
The funding is to help us expand Robosoft’s services to new geographies by investing in dedicated sales force there. As you are aware of, we also have two product businesses (Global Delight and 99Games). These are fully-owned subsidiaries have been incubated by Robosoft’s services business and part of the investment would be going into them to give them stronger wings to fly.
Recent Funding in App Space
Recently app devlopement companies have been receiving a lot of attention.In April, messaging app hike received $7 million in funding from Bharati Softbank and vernacular messaging app developer Plustxt Mobile Solutions raised an undisclosed amount of funding from Mumbai Angels and Amit Gupta, the co-founder of InMobi.