Nokia Growth Partners Announces Commitment From Nokia Worth $250 Million

by Paul Joseph on January 31, 2013 · 0 comments

Nokia has always tapped the all round potential of its assets. Not just the strong company profile it holds on the telecom industry but also the auxiliary businesses that it could derive some revenue from. This is a nice strategy considering the smart phone revolution didn’t prove to be so good for the once number one mobile phone manufacturing company of the world. Nokia Growth Partners, Nokia’s venture investment branch recently announced its third fund roll out and it is a whopping $250 million (1344 crore Rs. Approximately). The company plans to expand to China and has made a strategy that incorporates changes and expansion in its existing top level staff. Nokia growth partners was formed in 2005 and since then it has registered progress and returns on every investment it made across US, UK, Europe and Asia. Its existing portfolio includes names like Fashionandyou, Dealsandyou, Innovis, Network18, Quikr, TechProcess and the most recent addition Vizury. These comprise around a third of the total 23 active portfolio firms. The venture fund has also appointed David Tang as MD and Lu Guo as principal in China to expand its presence in Asia. NGP invests in companies operating in digital advertising, media and entertainment,  mobile hardware and components and basically anything related to mobile enterprise. Nokia, apart from investing in the venture also carries a strong backbone of network capabilities, itself being a major player in the telecom business so investment receiving entities enjoy a twofold benefit. Nokia benefits from its holdings in a great way. The parent organization of NGP, Nokia recently reported a net profit of 255 million euros in quarter ended December 2012 helped by restructuring efforts. Nokia, which is battling stiff competition from rivals including Apple and Samsung, had reported a net loss of 1.07 billion euro in the 2011 December quarter. This included the revenues from Nokia’s IP which garners a sizeable amount of revenue for the company. This IP is around 16000 patents in US alone. Nokia Growth partners will expand in Asia in the coming years. This would involve a major portion of the Nokia committed fund as the usual industry that it used to operate in now has some other big players. It is still number one in India but by the looks of it, Samsung would soon knock it over. This way, if Nokia could generate some cash, it could invest in R&D again, in the light of recent job cuts and project funding cuts. Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency

[via – Web, Advertising and Technology Blog in India]

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