MUMBAI: Intel Capital, the venture capital investment arm of Intel Corporation, is investing around Rs 300 million in Chennai-based Real Image Media Technologies Pvt Ltd, say market sources.
The funds will be mainly used for meeting the research and development and international marketing expansion plans of the company. Real Image is a company which specialises on digital entertainment technology in the film, video, audio and animation industries worldwide.
Real Image had received its first round of venture capital (VC) funding from Street Edge and Novastar in 2004. With Intel's investment, the company's total dilution to VCs is a little above 30 per cent, sources say. Neither Intel nor Real Image executives wanted to comment on the investments and the shareholding details.
Intel had set up a $250 million Intel Capital Technology Fund in December 2005. The investment in Real Image is made through this fund. "This latest investment, together with earlier announced funding in Maya Entertainment, Mauj, Mobiapps Holdings and Persistent Systems, aims at driving Indian innovation in wireless connectivity, digital media content and consumer internet," Intel says in an official release.
Real Media is targeting installation of its digital systems in theatres overseas. Besides, the company is eyeing digital theatres in India. Real image has solutions which can adopt to any format including MPEG-2, JPEC-2000 and Windows Media Player 9 series.
The company offers Qube Cinema, a digital cinema solution. QMedia is an out-of-home digital advertising solutions for products to exploit and reach out to their target audience while QJam networked digital jukeboxes is used in movie theatres as QCine digital cinema advertising solutions and in shopping malls as QSign digital signage solutions.
Intel's latest deal was announced in the 7th Intel Capital CEO summit currently underway in Mumbai. Intel Capital made its first strategic investment in India in 1998 and since then has invested in more than 40 companies across seven cities in India.
"This latest investment underscores Intel Capital's commitment to fostering technology innovation and growth in India." says Intel Capital president Arvind Sodhani. "Intel Capital has announced investment funds in India and other locations around the world and we will continue to work proactively with portfolio companies to make them more successful."