Lava is lifting $30 Million (almost Rs 193 Crore) from an associate of state-supported Chinese tech firm Tsinghua Holdings. This is the first decision by an Indian handset producer to lift finance in a difficult market in the middle of elevating rivalry from Chinese competitors. The Noida-located firm has released 5 Lakh CCPS (compulsory convertible preference shares) to Hong Kong-located UNIC Memory Technology for the fund-raising. This data is as per the company papers filed with the ROC (Registrar of Companies), which were witnessed by the local media. UNIC Memory Technology is an affiliate of Tsinghua Holdings.
The company aims to spend the funds in domestic handset manufacturing and design capabilities, sources well known of the issue claimed. Lava, which has been moved from its place among top smartphone manufacturers by Chinese competitors such as Oppo, Xiaomi, and Vivo, is spending in mobile handset design comprising setting up a mobile handset design hub in the country.
The firm also aims to increase up its current manufacturing divisions and including 2 units by spending Rs 2,615 Crore, to elevate the entire production capability to 216 Million units each year, in the upcoming 8 Years. Media’s questions conveyed to Tsinghua Holdings and Lava International did not provide any answers till late evening last week.
“Lava has been operating on this for a significant time now. On the other hand, the latest chaos in the market circumstances, particularly for the Indian companies this year in general and Lava exclusively, might make any investor consider twice prior to investing their money,” claimed research director at a research firm, Faisal Kawoosa, to the media in an interview. Lava has been attempting to lift $100 Million for over 2 Years.
The fund-raising stands for the 2nd such occurrence of a handset company of India associating with a Chinese organization.