The Economic Times reports that Tom Online is diluting a “large chunk” of its 62 per cent holding in game development and publishing company Indiagames. The company is believed to be in talks with venture capital firms like Sequoia Capital and Sherpalo Ventures (I am sure, Kleiner Perkins will also be part of the deal) to raise funds. ET says the deal is expected to be in the range of $10 million. Tom Online had picked up 75 per cent for $13 million in Indiagames in early 2005. Subsequently Adobe and Macromedia invested $4 million in Indiagames, after which Tom Online’s stake came down to 62.4 per cent.
When I met Vishal Gondal, CEO of Indiagames, a couple of months back, he had told me that Indiagames would be raising funds from venture capital sources. The company is on an expansion phase. It had recently launched an online gaming channel - Games on demand - now available on Airtel Broadband. I tried reaching Gondal on his mobile to get an update, but he seemed be unreachable. It seems a fund-raising is round the corner at Indiagames.
Disclaimer: Indiagames is an advertiser with us