The Hindu Business Line : Pioneer Online plans Rs 10-cr expansion

The company is looking at the possibility of an IPO to provide an exit route for investors, but not in the near future, says its MD, Mr Sridhar Reddy.

Hyderabad , Feb. 3

PIONEER Online Ltd., a software solutions provider and an ISP (Internet Service Provider), has announced plans to invest Rs10 crore in the company's Hyderabad centre during the year to set up a software development centre and add about 100 staff this year.

The Managing Director of Pioneer Online, Mr Sridhar Reddy, said the company was in the process of creating a new development centre adjacent the Vanenberg IT Park near the Hitec City, to create eLabs and an animation division.

"The investment of Rs 10 crore this year will be in addition to about Rs 13.3 crore deployed over the last three years. The funds thus far invested were raised through IDBI (Rs 8.3 crore), about two years back, apart from Rs 1.5 crore from the SBI through debt and internal accruals.

The Rs 10-crore new investment would be part financed through internal accruals and about Rs 7 crore from SBI. We are looking at the possibility of an IPO to provide an exit route for investors, but not in the near future. The company is set to record revenues of Rs 21 crore this fiscal, up from Rs 17 crore last year," he said.

Announcing the company's MoU with eSeva centres at a press conference here on Tuesday, Mr Reddy said that all the centres across the State would market Pioneer Online international VoIP (Voice Over Internet Protocol) cards.

The centres will have facility to make international calls at a fraction of the cost compared to regular calls.

With regard to the tie-up with Canadian company Talafone, Mr Reddy said that low bandwidth issues, which the entire VoIP industry faced over the last two years, created problem for the venture.

Though the arrangement was on, it did not take off as expected.