Recap 2015: Micromax - Some bolts but no blues

After deferring IPO plans, the homegrown major managed to attract interest from China-based Alipay, which said it would buy 25 percent stake over a valuation of $5 billion but later did a rethink.

Micromax stayed much in news, though not necessarily always for the best reasons. As part of a broader strategy to fund the company’s growth in an increasingly competitive market, it reportedly began the year pursuing with an IPO plan to raise USD 500 million for diluting a minority stake. However, that plan soon went on a backburner and gave way to a thought process that mulled inviting strategic investment.

Names of potential suitors that did the rounds for a strategic investment in Micromax included Japan’s Softbank and Chinese e-commerce major Alibaba. Later, an Alibaba group company Alipay, which focused on the online payment solutions market, was reported to have evinced an interest for 25 percent stake in Micromax, while the company was valued at USB 5 billion. However, by the time of doing this write-up, Alipay was reportedly reconsidering the investment.

The year also saw some differences crop up in the top management, involving the four co-founders of Micromax and its then chairman Sanjay Kapoor. The differences ultimately led to the exit of Kapoor and also created some bad press for the company, which however, continued to do well in the handsets market while giving the market leader Samsung a run for its money. Some market reports, though strongly contested, even positioned Micromax as a top mobile phone vendor in a specific quarter.

All of Micromax’s smart phone ranges—under the three flagship brands Canvas, Bolt and Yu—continued to do well, with the company significantly increasing the marketing focus for the Bolt range of devices in an obvious bid to increase its share in the mass market segment.

Also Read: Movers & Shakers of Telecom in 2015