SatNav lines up $10 mn

To launch in-dash navigation system for cars in April.

SatNav Technologies, a Hyderabad-based provider of navigation and global positioning system (GPS) technologies, will make an incremental investment of $10 million (about Rs 50 crore) by March 2010.

The company, earlier a part of Satyam Computer Services Limited before being spun off into a separate entity in 2004, will make the first tranche of $5 million investment by March 2009 for enhancing the retail presence of its flagship GPS navigation software product SatGuide and for boosting the depth of its map content. The second tranche will see an equal amount being infused into building up its portfolio including 5-inch and 7-inch products and in-dash navigation systems for cars by March 2010.

SatGuide, which guides the user within a particular city or from one city to another across India, is currently available on Windows mobiles, personal digital assistance, personal navigation device, laptop, desktop and on non-Windows phones.

Speaking to Business Standard, Amit Kishore Prasad, founder, managing director and chief executive of SatNav, said the company would utilise the $7.5-million capital raised from Sequoia in June this year, besides pooling in the rest through internal accruals, to fund the expansion.

“R&D on the in-dash navigation system, which comes equipped with an in-built 7-inch display monitor, AM/FM, DVD player, full-function remote control and USB 1.1 interface, is under way. We are in talks with major car makers who are trying to gauge the market. We expect two to three companies to tie up with us soon,” Prasad said.

Around 15 per cent of all car sales goes with GPS globally and the Indian market is no different, which holds promise for in-dash navigation systems. The product will be launched in April 2009 and the company is targeting to sell it at Rs 25,000 per unit, he said, adding, “We hope to sell about 20,000 units in the first year of the launch.”

On the retail front, the company has tied up with 20 major retail chains including Croma, Staples, eZone, HomeShop18, HCL DigiLife and Reliance AutoZone to make available its products in more than 100 stores across major metros in the country. “Our goal is to have 1,000 stores by 2010,” Prasad said. SatNav reported revenues of Rs 4 crore last year. It expects to close the current financial year with Rs 12 crore.