Indian cellphone retailers unite
Two Indian cellphone retailers are forming an alliance to unify their backend technology.
For Spice Mobility‘s Spice Hotspot and Optiemus Group‘s Mobiliti World and Univercell, the move is a precursor to a merger and the eventual sale of a sizeable stake in the combined entity. Experts say the companies are joining hands to gain economies of scale and create a pan-India presence next to the largest player, Reliance Retail, reports the Economic Times.
“This is for adopting the best practices in backend and also expand the frontend together.
“Spice will get some equity in Mobiliti World and UniverCell as management incentive, but eventually there will be a merger,” says Modie. “After that, we will explore options to unlock
value either through an IPO or sale to a strategic investor.”