Malaysian-based Astro All Asia Networks has bought 50% stake in New Delhi-based GETIT Infoservices for around Rs.100 Cr. The deal values GETIT at Rs.200 Cr.

GETIT will use the funds to expand business to publish and distribute classified advertisements and buy guides or FreeAds among other initiatives.

Astro All Asia Networks plc (ASTRO) is Malaysia’s leading cross-media group with significant presence in DTH (Direct-To-Home) TV services, commercial radio and TV programming.

Transaction Reference: FE

Astro is already an investor in Kalanithi Maran's Sun Direct DTH. It also holds 20% stake in South Asia FM, the private FM venture of the SunTV Group.

It is also looking for more investments in television content creators and cable operators.

Last month Astro acquired 80% stake in Sanjeev Kapoor's Turmeric Vision Pvt Ltd.

For GETIT, which publishes Yellow Pages, buying guides and business directories in over 35 cities, had earlier raised Rs.20 Cr from VC fund Helion Venture Partners by diluting 10% stake two years ago. This deal also valued GETIT at Rs.200 Cr, almost the same valuations at which Helion bought its stake.

GETIT's FreeAds is India’s first free-classified advertising paper from GETIT with operations in four cities. GETIT also plans to expand on the Web and mobile application services space.

With Astro’s acquisition, there are at least six foreign investors and PE funds in the domestic classifieds market now, including Helion Ventures, Saffron Hill Ventures, SAIF Partners, Tiger Global and Sequoia Capital that have invested in companies like JustDial, GETIT, Infomedia India and Guruji.

In the last four years, Mumbai-based local search firm Just Dial has received foreign investments worth Rs.170 Cr. In 2006, SAIF Partners invested Rs 50 crore in Just Dial for a 20% stake. This was followed by a Rs 77-crore investment by Tiger Global the next year for another 20%. Sources say later Sequoia Capital picked up around 10% stake for Rs 35-40 Cr in 2009 in a secondary deal.

Other players in this space with foreign investments include Chennai-based telephone directory search service Call Ezee in which Yahoo! acquired a 30% stake last year. AskLaila and Sulekha.com also have had investments from venture funds like Lightspeed, Matrix, Norwest, and Indigo Monsoon.

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Readers' Recommendations

1	October 26, 2010 06:55 AM	Piaget Golden - Posted by bags Recommended by 0 Readers
2	October 13, 2010 11:25 PM	In a dramatic video conference session to employees across India, Sidharth Gupta- CEO of Astro funded Getit Infoservices said "We will soon be bigger than Google". Well, well, well haven't we heard that before! The only serious executive on the team was Raghav (Astro) who categorically asked Dinesh Rao, COO to get in shape and be in touch with Ground realities and report factual progress on a monthly basis. The employees raised daring questions like "What did you see of value to invest Rs 96 cr in Getit?", "we see sukekha, just dial, indiamart, etc on any google search but Getit.in is never to be seen?" And "Print yellowpages is a dead medium". When Sanjay Bhasin, product head was "Publically embarrassed" by Raghav Madhav and was asked to shape up in 60 days or ship out. It clarifies one thing... Astro means business. - Posted by Ravi Kiran Recommended by 0 Readers
3	October 13, 2010 05:22 PM	lets see the future and come to the conclusion,ever y private ltd company will be having the same situation like get it,you can as well look in to the history of astro. - Posted by owean Recommended by 0 Readers
4	September 23, 2010 11:44 PM	It has been learnt that Tthe funding decision has been retrieved personally by Astro Group CFO since there has been no traction in products leading to consistent dipping record low revenues. Astro has witheld actual funding as this is already a NPA and will invest in parts only if CEO steps down which the old owners are resisting. Total debt has already gone beyond Rs. 50 crores and liquidation will most certainly be initiated with this decision. - Posted by srinath Recommended by 0 Readers
5	September 22, 2010 10:17 PM	Getit info services which has investments from Helion Venture may have to file bankruptcy. Astro AAN is reportedly very unhappy with the management whose 'growth drivers' have failed miserably to produce any significant revenue even after several fund rounds. - Posted by Breaking News Recommended by 0 Readers
6	August 14, 2010 08:43 AM	Most would say this investment indicates a big potential of local databases and their coming together across media distribution channels. But for those who follow the players closely will really tell you why investing in Getit is such a bad idea. This has a lot to do with the history and leadership of the company and not with the industry. Getit info services introduced yellow pages in the country as their core business but never had the ability to take the early movers advantage. More so, the getit directories just cannot be used as they are not alphabetical like everywhere else in the country/ world. As a result, Infomedia 18 today has a lead of 75 crore revenue from where getit is today. Getit telephone services has been existing for a decade now with as low as 45 lakhs of total revenue till date against players like just dial who started much later and clock over 10 crores per month now. The online products of getit are as good as non-existent and not menetizable as a result no one knows about them, forget using or competing them. Neighborhood Flash magazine was a flop show and was closed down. Asianvendors.co m was another flop by the same leadership which blew 35 million dollars before shutting down 3 years ago. Free Ads classifieds business has just been burning money and closed down two times already in last 5 years in many cities. They attempt to compare with Sulekha and Asklaila but are not even close on the product / value addition side. The key contributing staff have already left and over 150% attrition happened in last 12 months alone. The overall group revenue has been steadily falling from 85 cr (2006), 68 cr (2007), 47 cr (2008) and 31 cr (2009 - last year). This gives a key insight that they have not got the strategy right and the owner cum CEO must step away for a turnaround. Only 3 out of 36 branches make a operating profit. The earlier investors Helion Ventures also refused to re-invest, even when they are the most active investors in the country this year. Bottomline: Getit really has nothing that money will change for them. Good luck to their new investors! - Posted by Diligent Recommended by 0 Readers
7	August 14, 2010 08:23 AM	i live in Jaipur and face really bad experience with Getit. since the last few months when i use the telephone service 4444444 it is vary very bad. i have to hold 14 minute to speak to sleepy executives and finally no sms comes to my reliance phone. i also paid 3000 rs. to advertize on Getit now service but i do not get sms and they are duping. it is very shameful service and they should close it and pleaze refund my invastment. Jain, jaipur. - Posted by Jain Recommended by 0 Readers
8	August 11, 2010 01:18 PM	Most would say this investment indicates a big potential of local databases and their coming together across new media distribution channels. But for those who follow the players closely will really tell you why investing in Getit is such a bad idea. This has a lot to do with the history and leadership of the company and not with the industry. Getit Infoservices introduced yellow pages in the country as their core business but never had the ability to take the early movers advantage. More so, the getit directories just cannot be used as they are not alphabetical like everywhere else in the country/ world. As a result, Infomedia 18 today has a 50 crore revenue lead from where getit is today. Getit telephone enquiry services has been existing for a decade now with as low as 60 lakh of total revenue till date against players like Just dial who started much later and clock about 10 crores per month now. online products of getit are shabbier than anyone in the market as a result no one knows about them, forget using or competing with them. Neighborhood Flash was a flop show and was closed down. Asianvendors.co m was another flop by the same leadership which burnt 35 million dollars before shutting down. Free Ads classifieds business has just been burning money and closed down two times already in last 5 years in many cities - dependent only on depleting print revenue. Freeads.in is the idea of bringing it online but the product is so poorly structured that it cannot even be compared to any good classifieds engine. Employees, merchants, vendors, bankers, creditors, suppliers, (old investors), advertizers, government agencies, partners are all fed up of the company and have been waiting to get paid for years together and many have swarmed legal notices which are being privately settled. The key contributing staff in finance, sales, corporate alliances, IT and product have all left them with 150% plus attrition in last 12 months itself and the massive revenue dips say it all. All except 3 out of 36 branches make a loss. Ever wondered why the earlier investors Helion Ventures refused to re-invest, even when they are the most active investors in the country this year? Its because Getit really has nothing that money will change for them. Paranoid, Getit has sent written advice to employees not to comment or blog on PR coverage as they fear popular sentiment coming out in the open. Getit has really not Got it and it so seems Astro has'nt too. Very soon the numbers will show. The industry will be indifferent to this investment. My best wishes to all of them. - Posted by Insane_to_invest_in_Getit Recommended by 0 Readers
9	August 09, 2010 06:28 PM	Shocking that Astro has decided to invest in Getit Infomediary. consistently dipping revenue market shares and accumulated 45 crores of losses with bad products, inexperienced (in new media)leadershi p team and very high attrition. the ceo is narrated as a case study for destrying businesses from the past in india. - Posted by marie Recommended by 0 Readers
10	August 09, 2010 04:04 PM	Helion invested in getit infomediary after sorting out their family interlinkages and started repenting from the very first quarter as the projections were falling down consistently. As a result, they refused to invest any more money even when the company almost went bankrupt and did not pay their employees and vendors for many months - till today. one after another all vc and pe firms rejected the proposal to invest in getit as they have nothing of value but only mounting debts. their only claimed possession of data is also misrepresentati on as only 30% of 2 million claimed database actually has correct contacts. the company further changed the format of yellow pages from alphabetical to categorised purely on whims of the ceo (who is a spoilt rich son and has a history of leading ventutres to failures) and now hardly anyone uses the directories and naturally they are losing revenue 8 times faster than the industry. the loyalist performers have already left and the further declining numbers are proof of bad management. the company will now spend their new money in advertising bad products and perish faster than they otherwise woudl have. there must be some personal obligations why aircel has invested here. if they has any experience they must hold a lens and save their money- while they can. - Posted by ZB Recommended by 0 Readers