Indian mobile device startup gets $8.5 million in financing

SIDBI Venture Capital and Clearstone Venture are investing a combined $6.5 million into a mobile device designing and manufacturing startup, DGB Microsystems. The startup’s founder and associates are putting in $2 million of their own money.

SIDBI Venture Capital, India-focused venture fund manager and Clearstone Ventures, an early stage venture capitalist, have invested $1.5 million and $5 million respectively in DGB Microsystems. The business founder and associates also injected $2 million in the latest financing round to bring the total funding to $8.5 million.

It is Clearstone’s second investment in India, according to Rahul Khanna, director of Clearstone Ventures Advisor.

DGB Microsystems is a mobile device design firm that is developing system-on-chip software, as well as mobile handsets, Ajay Kumar Kapur, chief executive officer of SIDBI Venture told PEO.

Kapur said the financing is SIDBI Venture’s second financing round in the Chennai-based mobile device developer, after it invested $3 million nine months ago, as the sole investor.

SIDBI is mulling the raising of a new fund. The firm is currently investing its second fund, a $110 million sector-agnostic fund aimed at helping small and medium sized enterprises grow. The fund held a final close in May 2005.