mGinger, a Bangalore-based start-up in mobile advertising, today announced that it has attracted $2 million in funding from Draper Fisher Jurvetson and NEA-IndoUS Ventures. The company will use proceeds of the financing to significantly grow its business, build up their technology stack and ramp up their marketing and sales force.
mGinger provides advertisers with permission-based, targeted marketing. mGinger enables advertisements including offers, vouchers, news and more, sent in the form of SMS on consumers’ mobile phones. These advertisements are specific to consumer interests and demographics mentioned during sign-up (www.mginger.com) and received only in the timings that consumers specify. An additional value-add for consumers, is the earning potential of receiving these advertisements, which is redeemed through a gift cheque from mGinger.
“We at mGinger believe that there is much more to mobile phones than receiving advertisements through text messages.” said Chaitanya Nallan, CEO, Gingersoft Media Private Limited. “With this funding, we look forward to bringing a lot more innovative services to mobile users in the near future and opening up this potentially huge market in <?xml:namespace prefix = st1 />India. We are delighted to have investors like DFJ and NEA partner with us in this venture.”
“We are ecstatic about not only what mGinger has accomplished but what the prospects are.” said Mohanjit Jolly, Executive Director, Draper Fisher Jurvetson. “The ubiquitous presence of the mobile phone in India and the SMS usage makes this a highly promising market and serves as a potential ‘holy grail’ for consumers as well as advertisers.”
“The huge market potential, the effectiveness of this new medium of advertising and the uniqueness of mGinger’s offering makes this a very attractive investment for us. The mGinger platform solves critical problems like content composition, cost of campaign and return on investment measurability for advertisers” said Sateesh Andra, Venture Partner, Draper Fisher Jurvetson. “Besides, mGinger also has a brilliant leadership team which has taken the company well-ahead of the others in this space.”
“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 the advertiser.” said Vani Kola, Managing Director, NEA-IndoUS Ventures. “With this solution advertisers can track the effectiveness of advertising spends against results received, creating a win-win for both advertisers and consumers. mGinger has created a solution which will have a long term impact on the mobile advertising space and we are excited to be a part of this sea change.”
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 the mobile phone ensures immediate reach, without being viewed as mobile spam.
Source: Money Control