By IANS
Bangalore : Bangalore-based mobile advertising firm mGinger has secured $2 million (Rs.79.6 million) venture capital funding from Draper Fisher Jurvetson and NEA-IndoUS Ventures.
The fund would be used to build up its technology stack and ramp-up its sales and marketing force, the company said in a statement here Wednesday.
mGinger provides advertisers with permission-based, targeted marketing.
It enables advertisements, including offers, vouchers, news and more sent in the form of short-messaging service (SMS) on consumers’ mobile phones.
The advertisements are specific to consumer interests and demographics.
“We believe there is more to mobile phones than receiving advertisements through text messages. With this funding, we look forward to bringing innovative services to mobile users and opening up a potentially huge market in India,” said mGinger CEO Chaitanya Nallan.
Draper Fisher Jurvetson Executive Director Mohanjit Jolly said the ubiquitous presence of the mobile phone across the country and SMS makes mGinger offerings a promising market and serves as a potential “holy grail” for consumers and advertisers.
“The huge market potential, the effectiveness of the new medium of advertising and the uniqueness of mGinger’s offering makes this an attractive investment for us Draper venture partner Sateesh Andra pointed out.
The current way of marketing on mobile phones needs to change from an intrusive model to a permission-based model where customers dictate the type of advertisements received.
mGinger’s offering is a creative model offering great value to the consumer and a cost-effective solution for advertisers.
NEA-IndoUS Ventures managing director Vani Kola said with mGinger solution, advertisers can track the effectiveness of advertising spends against results received, creating a win-win for advertisers and consumers.
mGinger solution will have a long-term impact on the mobile advertising space, he said.
With over 200 million mobile subscribers in India, advertisers can target a specific base of consumers in a meaningful way, allowing them to see a much higher rate of return on their investment.
The direct and personal nature of a mobile phone ensures immediate reach, without being viewed as mobile spam.