in talks with companies to raise $3-4 million

ZD Net India,

New Delhi,

January 30, 2001

The Delhi-based plans to enter into various alliances with companies and venture capitalists in a bid to raise $3-4 million.

The company plans to raise the funds by March-April through private placement. It is also likely to dilute 10 percent of equities in order to raise the funds.

Currently, the portal draws its revenues from advertising, Web development and the paid services on the site. A portal for Indian exporters and manufacturers to display their products and services, Indiamart also develops Web sites for other companies.

The company has reportedly earned a turnover of Rs 1.25 crore last fiscal and is expected to draw more than Rs 3 crore.

According to reports, the company in talks with an Indian venture capitalist, an American merchant bank and a Canadian company. The funds will be utilised to upgrade technology, build infrastructure, besides opening 25 new offices.

The partnership is also expected to aid the company enter newer markets and help complementary technologies, company officials said.