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.

Spice Mobility chairman Dilip Kumar Modi says his company will have day-­to-day control of Mobiliti World and UniverCell along with Spice Hotspot as part of the deal.


“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.”

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