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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9473)	11/8/1999 9:00:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Rediff set to tie up a fresh round of venture cap funds Harshad Oke (ET) MUMBAI 8 November REDIFF on the Net ( rediff.com), a leading Internet portal company, is close to sewing up its fourth round of venture capital financing. The deal is expected to take place at a valuation of $150m, and is expected to be closed during the course of this week. When contacted, Ajit Balakrishnan, chairman, declined to comment on both the price at which the deal will go through and the likely names of investors. Said Mr Balakrishnan: "I have no comment at this point." Sources, however, said the deal is likely to be arranged by investment banker Salomon Smith Barney. Mr Balakrishnan, however, said this was not true, adding, "We will be announcing the names shortly." The company will be utilising the money raised from the current round of financing to upgrade its technology, marketing and brand-building. The $150m valuation for the fourth round is higher than the $125m Rediff commanded in the previous round of financing. The third round was conducted sometime early this year, and apart from others, included Intel as one of the investors. In the earlier rounds, Rediff received investments from venture capital companies including Draper International. Rediff has also announced its intentions for an initial public offering. Said Mr Balakrishnan: "That is still a long way off. It may happen some time towards the end of 2000." Before its goes to the bourse, Rediff will be conducting its fifth and final round of financing over the next few months. Compared to other portals, Rediff has been an innovator as it has developed its own search engine by hooking up with US-based Inktomi, the world's third largest search engine services provider. That apart, Rediff has also struck several strategic alliances to gain vital audience. The website claims that it generates upwards of 50 million hits per month.