Sinar Mas and Xavier Niel Invest $24M Into MyRepublic.
MyRepublic has recently announced that two new major stakeholders, Sunshine Network, the telco arm for Indonesian conglomerate Sinar Mas, and Xavier Niel, founder of French telco Free.
Both of them have made an investment amount up to S$30 million (US$24 million), with Sunshine Network investing $20 million (US$16 million) and Niel investing S$10 million (US$8 million).
CEO of MyRepublic, Malcolm Rodrigues stated, “MyRepublic is flattered and encouraged by the trust and partnership of Xavier Niel and Sinar Mas. These strategic relationships don’t just present opportunities for us to learn from larger, more experienced players, but also help to push the MyRepublic brand further into Asia and bolster our plans to become the next telco in Singapore.”
This recent addition of funding shall support the enhancement of the MyRepublic’s service and brand. It will also fund the launching of MyRepublic into the New Zealand market during the latter half of 2014.
MyRepublic’s recent proposal to become Singapore’s fourth Telecommunications company garnered attention. Given the stagnation of the market and stronghold by oligopoly of Singtel, Starhub and M1, MyRepublic’s entry into the market changes the status quo. Its 1Gbps fiber broadband offering causes disruption upon the Singapore fibre broadband industry, forcing the focus back onto the consumers.
MyRepublics low-cost operations model gained the attention from Sinar Mas. Under the traditional operation models, Indonesian consumers pay even less for telecom service than their counterparts living in Singapore. The investment is targeted at fostering a mutual benefit for both companies.
Xavier Niel has been stated to be the next coming of Steve Jobs for the European telecommunications industry, due tot he way in which his company, Free, entered into the French telecom market and disrupted the norm by offering mobile plans at half the price for competitors and establishing new benchmarks in service and pricing.