Sequoia Capital and IDG Ventures India are the first investors in Sourcebits
By Sneha Shah of Mint
Mumbai- Sequoia Capital India Advisors and IDG Ventures India Advisors have invested $5 million each in Sourcebits Inc, a third-party mobile and tablet applications developer. Sourcebits will use the money to set up its U.S. development center and other expansions.
Sequoia and IDG will get a board seat each in the company, and will be invested for five to seven years, the company said. Sourcebits refused to divulge the stake it sold to the two investors.
"We expect the mobile app business to be (worth) $35 billion by 2014 and hence the phenomenal growth will help Sourcebits develop into a bigger player in the market," said Manik Arora, founder and managing director of IDG Ventures India.
Sourcebits has 300 employees in India, Europe, Russia and the U.S., and has developed downloadable applications for the iPhone, iPad, Blackberry and Android-based phones.
For the year ended Dec. 31, the company had revenue of $7 million.
"We are making good profits and growing almost 100% every year," said Rohit Singal, founder and managing director of Sourcebits.
The company was founded in 2006 and has nearly 300 applications to its credit. Some of its most downloaded applications are Robokill, Knocking Live, Daily Needs, Night Stand, Skyfire and Beast Farmer.