Vserv eyes revenue from mobile, cable recharge transactions
Firm will also provide technology that will allow shoppers to complete recharge transactions on the banner and other ads
- Carlos Ghosn custody extended as crisis deepens at Nissan
- Infosys to create 1,200 jobs in Australia, set up three innovation hubs
- Crude oil rates down 30% since October; petrol, diesel prices decline 10%
- Mark Zuckerberg says no plans to resign from Facebook
- Key players involved in auto icon’s Carlos Ghosn downfall
Bengaluru: Mobile advertising technology provider Vserv Digital Services Pvt. Ltd, which recently raised $15 million from investors, has launched an e-commerce business that will generate revenue from mobile and cable recharge transactions.
Until now, like other ad tech firms, Vserv sold data on customer shopping patterns to companies in India and Southeast Asia and helped these companies place relevant ads online and on the mobile. Now, Vserv will also provide technology that will allow shoppers to complete recharge transactions on the banner and other ads. The company will take a cut of every such transaction.
“Vserv’s massive reach of 120 million unique users in India, combined with this commerce solution, creates a disruptive development in the mobile Internet ecosystem,” chief executive officer Dippak Khurana said. “With our commerce solution, we now complete a user’s journey from intent to purchase. This unique proposition provides a powerful opportunity for consumer-facing companies who are seeking to tap into the growing mobile Internet user base.”
The total revenue of telecom and so-called direct-to-home (DTH) services in India stood at around $31 billion last year 2014, according to Vserv estimates. Roughly 10% of these revenues were generated online and this side of the business is expected to grow by 300% in the next 4 years, Vserv said.
“I expect our commerce business to become bigger than the marketing/data business over the next year. We already provide smart data and technology to customers. The new business will enable us to add a lot of value to telecom and DTH customers, and it’s the logical step for us to take. We’re not currently considering launching this for other customers, but if we can add similar value for them, we will do it over time,” Khurana said.
Vserv raised $15 million from venture capital firm IDG Ventures and hedge fund MaverickCapital in March.
Although the future of ad tech is far from clear, investor interest seems to have revived in these companies, once seen as unprofitable bets.
Some ad tech start-ups are seen as acquisition targets for top e-tailers such as Flipkart and Snapdeal, large technology firms such as Facebook Inc and Twitter Inc., and even international advertising agencies.