India-based mobile manufacturer Karbonn Mobile is planning to divest its 15-20 per cent stake to private equity players. The company will use the capital to expand its operations in the overseas markets.
The handset manufacturer intends to expand its footprint to 65 countries, by entering 25 new markets across Southeast Asia, West Asia, Africa and Eastern Europe through a mix of retail sales and bundling of handsets with telecom service providers. The company has already signed distribution partnerships in Russia and Ukraine and is planning to enter the Chinese market.
Karbonn had earlier attempted to secure funds through equity dilution, but the plans did not materialise. The funds were to be utilised for setting up a manufacturing facility and finance acquisition of a company. However, the company is now awaiting policy clarity before setting up a manufacturing plant in India.
Meanwhile, Karbonn Mobiles is aiming for a 17-18 per cent share in the Indian smartphone market by March 2015 and 25 per cent by 2016. It also plans to launch wearable devices and 4G-enabled smartphones by January 2015 and March 2015 respectively.
