IDG Ventures Appoints Sudhir Sethi as Managing General Partner of IDG Ventures India; Establishes $150 Million Technology Venture Fund

BANGALORE, INDIA – SEPTEMBER 12, 2006 – IDG Ventures, a global family of venture capital funds affiliated with International Data Group (IDG), today announced the appointment of Mr. Sudhir Sethi as Managing General Partner of IDG Ventures India, which manages a recently established $150 million venture capital fund.

"We believe the rapid increase in the market for technology products and services in India, combined with the entrepreneurial spirit and talent of its people will create an extremely bright future for venture capital investing in India," said Patrick J. McGovern, Founder and Chairman of IDG. "This is the reason that we decided to establish the IDG Ventures India Fund as the newest member of our global family of funds, which together manage US$1.4 billion of venture capital in the U.S., China, Vietnam, and now India."

"I am delighted that Sudhir Sethi has decided to become the Managing General Partner of the team that will manage the IDG Ventures India Fund. Sudhir is a recognized leader in both the technology as well as venture capital industry in India. Sudhir has, in turn, appointed an experienced team of Venture professionals," continued Mr. McGovern.

According to Mr. Sethi, "India provides a unique opportunity for investors in early-stage and growth-stage companies with a technology focus. The IDG Ventures India Fund will primarily invest between US$ 0.5 and 5 Million in early-stage technology companies and opportunistically up to US$ 10 Million in compelling growth-stage companies. These companies will be in IT and BPO services, design engineering, electronics and hi-tech manufacturing, consumer internet and digital media, product application software, semiconductors, telecom and value-added mobile services, financial services, and other emerging technology-enabled areas."

"Over the next five years we expect to invest in 20-25 companies in India and the Indo USA corridor. Given IDG Venture's global network, one of the key value-additions to our investee companies in India is to help them expand into China," Mr. Sethi added.

Announcing the IDG Ventures India founding team, Mr. Sethi said that he has named Mr. Manik Arora as a General Partner, Mr. T C Meenakshisundaram (TCM) as Chief Financial Officer and Mr. Hemir Doshi, as Investment Advisor.

The IDG Ventures India team will be guided and supported by a world-class advisory board. To date, the fund's advisors are Dr. Jagdish Sheth, the world renowned academic who serves on the Board of Wipro, Mr. Arjun Malhotra, co-founder of IT conglomerate, the HCL Group and currently Chairman & CEO of Headstrong, and serial entrepreneur Mr. K B Chandrashekhar, founder of Exodus Communication and e4e.

The IDG Ventures India Team

Mr. Sudhir Sethi: Prior to joining IDG Ventures India he was a General Partner for Walden International where he headed up their venture capital operations in India. In 2001, he was recognized by Red Herring as one of the leading venture capitalists in India. Prior to Walden International, Mr. Sethi spent twelve years as a senior executive at Wipro. He has been named among the Top Ten IT Professionals by Dataquest. Most recently, Mr. Sethi served as President and Executive Director of Infotech Enterprises Ltd., a global design engineering and GIS services company. Mr. Sethi also served on the Investment Committee of UTI Ventures over the past four years and on the Board of Advisors at NS Raghavan Center for Entrepreneurship, IIM Bangalore. He served on the Board of Directors at Infotech Enterprises, Mindtree Consulting, Venture Infotek, Jobstreet, Webvision and Webdunia.

Mr. Manik Arora: Mr. Arora most recently was a venture capitalist in Silicon Valley at Battery Ventures, where he led their India practice and covered the Internet and digital media, software and technology-enabled services sectors. He is a founding management team member of multilingual Internet pioneer i-DNS.net International, where he led strategy and business development. Previously, Mr. Arora managed global outsourcing initiatives for American Express in New York and also served as assistant country manager for MasterCard International's Singapore operations. His early career was as a strategy consultant at The Boston Consulting Group in South East Asia and he holds an MBA from the Sloan School at MIT.

Mr. Arora said, "I am excited at the opportunity to partner with Sudhir to build the leading venture capital fund in India. The need for venture capitalists to actively support early-stage technology companies in India is substantial. We are particularly keen to enable accomplished professionals from the corporate world to start new ventures. With the assistance of IDG's market research, business development, and customer intelligence services, we look forward to supporting entrepreneurs to help build category-leading companies in India."

Mr. T C Meenakshisundaram: Joining the fund as Chief Financial Officer is Mr. T C Meenakshisundaram (TCM), who currently serves as CFO and President – Corporate Services at Venture Infotek, a leading payments processing company. Prior to this TCM worked with Mr. Sethi in Walden and Wipro. TCM, a Chartered Accountant, brings tremendous expertise in financial analysis, legal structuring, corporate governance and due diligence to the fund. TCM has served on the Boards of Jobstreet India, Webvision India and VIeTrans.

Mr. Hemir Doshi: A MS from Georgia Tech, Hemir joins the founding team as Investment Manager. Until recently he led a boutique management consultancy start-up, India Capital Advisors, after working at a US based hedge fund.

About IDG Ventures

IDG Ventures is a global network of venture capital funds with approximately $1.4 billion under management. It has a portfolio of 220 investee companies built over the last 15 years. The IDG Ventures network is comprised of five independent partnerships managing funds in North America, China, Vietnam, and now India. Each partnership makes investments on behalf of its Limited Partners, including its principal investor and sponsor, International Data Group (IDG), the world's largest IT media company. By combining the IDG platform – an unparalleled combination of global publishing, market research (IDC), and conferences and exhibition resources – with years of hands-on experience in early-stage company building, each IDG Ventures Fund helps their investee companies understand their markets better and penetrate them faster than their competition. Additional information is available at www.idgventures.com .

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