Intel invests $10m in Mango Telecom

The fresh capital will be used by Mango Telecom to pursue further expansion throughout Russia, as well as into new European markets. The company will also use the funds to invest in its infrastructure and R&D activities.

The deal marks the 10th year of Intel investing in the Russian market. Previous investments made by the firm in Russia include the $38m funding round for KupiVP in June 2012. The round was led by Intel with participation from Accel Partners, Balderton Capital, European Bank for Reconstruction and Development (EBRD) and Acton Capital Partners.

The firm has also taken part in two funding rounds for Eruditor Group, most recently investing $12m in the business alongside Runa Capital and Frontier Ventures last September. Intel previously led a $4m funding round for Eruditor with Runa in October 2012.

Founded in 2000, Mango Telecom is headquartered in Moscow with additional offices in eight other Russian cities including St Petersburg, Yekaterinburg, Nizhny Novgorod and Novosibirsk. The company employs 300 staff and recorded revenues of RUB 884.8m (c$25.4m) in 2013.

Mango Telecom provides cloud-based business solutions such as virtual private branch exchange (PBX) as well as call centre and customer relationship management (CRM) systems. The company claims its virtual PBX is more cost-efficient and scalable than the traditional hardware-based system.

The company claims to have 30,000 clients and an active user base of 200,000. It is expecting to experience a year-on-year growth rate of 50% in the near future.

Yuriy Zigulya is the president of Mango Telecom while Dmitry Byzov is the company's CEO. Marcin Hejka is Intel's managing director for Russia, eastern Europe, the Middle East and Africa. Maxim Krasnykh is the firm's director for Russia and CIS.

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• Topics
• CEE
• Expansion
• Technology
• Russia
• Intel Capital