MediaTek buys 10% in Spice Digital for $20 million

NEW DELHI: Taiwan's MediaTek, maker of chips used in mobile phones, picked up a 10% stake in Indian value-added services playerSpice Digital for $20 million, valuing the company at $200 million, or 883 crore.

MediaTek chairman Ming-Kai Tsai said: "Through this investment in Spice Digital, we are hoping to capitalise on its market potential and reinforce its strong operator relationship and leading position in India, SEA, Africa and Middle East."

This is the latest move by MediaTek, which already has presence in India, to expand into the fast growing economy and its booming telecom market. Mobile value-added service market in India is expected to grow 100% over five years and will constitute about 10% of total telecom revenue for Indian operators, according to market research.