Today hybris announced it has secured an additional $30M in funding from two Silicon Valley VC giants (Meritech Capital Partners and Greylock Israel). This funding comes only 18 months after hybris took a significant funding round from Huntsman Gay Global Capital to secure their acquisition of iCongo in August 2011. Despite an unprecedented period of growth over the past two years the firm has remained profitable. So why has hybris taken this additional round of funding and what does it mean for customers, prospects and partners?
It allows hybris to retain independence while growing credibility and market share. This additional round of funding buys hybris a window of security to maintain their independence in the market, allowing them to focus on R&D and scalable expansion without the distractions of the need to do an IPO or the threat of acquisition. By adding two leading VC firms as investors, the firm is clearly signaling to the market their intent to solidify their position as a global leader in the commerce technology market.
On February 28, 2013, India (as part of its 2013-2014 budget) announced that it would increase the excise duty on mobile phones costing more than $36 to 6%, up from the current level of 1%. Forrester believes that this increase will not affect the mobile industry in India very much because:
Sub-$100 smartphones will trigger new kinds of competition in the market. As high-end mobile phones get more expensive, Forrester predicts that smartphones costing less than $100 will be in much greater demand. Moreover, handset manufacturers will absorb a large portion of the price increase to sustain their sales.
Explosive mobile Internet growth. With increasing urbanization and improving per capita income, more people will begin to use the Internet, and the use of smartphones will rise quickly. We forecast that the mobile Internet user base in India will grow by more than 30% year-on-year over the next five years.
Addicted social media youngsters. With more than 61 million Facebook users, India ranks as Facebook’s third-largest audience in the world after the US and Brazil. Half of these users are between 18 and 24 years of age, and the majority of them use their mobile phones to connect to the world.
Rapid eCommerce growth complementing the mobile sector. Forrester estimates that eCommerce revenues in India will increase more than fivefold by 2016, jumping from US$1.6 billion in 2012 to US$8.8 billion in 2016. Mobile-friendly sites from various players and eCommerce website aggregators will help accelerate mobile Internet adoption.