Bangalore-based IDG Ventures India and Qualcomm Ventures have invested $3 million in mobile video platform developer Apalya Technologies. The Hyderabad-based company intends to use this investment to build its presence in India, as well as enhance its service offering initiatives.

"Apalya has built a successful business around mobile data services with an innovative mobile TV and video platform suited for the Indian market. The investment will help the company to expand its offerings to 3G wireless networks and pursue dedicated mobile TV deployments in the future," said Karthee Madasamy, director at Qualcomm Ventures.

The mobile value-added services (VAS) market has grown by around 60 per cent year-on-year and is estimated to touch Rs 251 billion in FY 2009-10.

"Apalya fits well with the fund's criteria of a good team, disruptive technology and a large opportunity in mobile VAS space, as mobile TV/video has been a "killer-app" in other 3G markets," said T C Meenakshisundaram, founder and managing director, IDG Ventures India.

The company intends to take advantage of the upcoming rollouts of the next generation wireless technologies, as data services is expected to be a key driver for improving the overall telecom revenue and profitability. Also, the upcoming 3G license auctions is one of the main reasons for the rapid growth of the mobile TV and on-demand video business, on account of the opening up of bandwidth in the country.

"Today, with the Indian market opening up to 3G, we plan to introduce additional mobile entertainment services, including customised entertainment channels, premium video programming and mobileexclusive original programming," said Vamshi Reddy, CEO of Apalya. Through this deal, the company will get to leverage IDG's media expertise and Qualcomm's proficiency as the leader in mobile technology.