The Hindu Business Line : Bharti Airtel launches Rs 200-cr venture fund

Innovation fund: Mr Manoj Kohli (left), CEO and Joint MD, Bharti Airtel, and Mr Shaun Parmar, Corporate Director, at a press conference in the Capital on Thursday. -

Our Bureau

New Delhi, Sept 11 Bharti Airtel Ltd on Thursday announced the launch of a Rs 200-crore ‘Airtel Innovation Fund’ aimed at providing seed capital to start-up firms developing applications, technology and content for telecommunications sector. The applications developed by various companies with support from the fund may not be restricted only for use by Airtel subscribers.

Analysts said that this move could be important in the light of third generation mobile services scheduled to be launched early next year.

Mobile operators such Airtel will require a host of innovative applications if they have to make money by offering 3G services. At present, the mobile market is predominantly driven by revenues from voice-based services. However, with the tariffs spiralling downwards, operators are on the lookout for the killer application. Through this fund, Bharti may be hoping to have a nursery of ideas for driving up its revenues through value-added services.

Mr Manoj Kohli, CEO and Joint Managing Director, Bharti Airtel said that more than the financial gains, the objective of the initiative was to enable innovation. “The start-ups, funded by Airtel, will be allowed to manage and run their business independently. If they need our help with strategy we will provide our inputs. The applications developed by these ventures may not be only for Airtel’s internal consumption. These decisions will be taken on a case-to-case basis,” Mr Kohli said. Bharti has not identified any venture yet to kick start its funding programme, though Mr Kohli said that the company was open to new ideas.

Mr Sunil Bharti Mittal, Chairman and Managing Director, Bharti Airtel said, We are confident that this initiative will co-build the twin pillars of innovation and entrepreneurship to usher in a new wave of entrepreneurs in India.”

Mr Mittal himself began as a start-up in early 1990s to become the promoter of the largest telecom company in the country.

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