From handset maker Xiaomi and venture capital firm Sequoia Capital India have invested $7 million (Rs 48 crore) fresh funds in Hyderabad-based social media and chat entertainment platform Samosa Labs, a top company executive told TechCircle.
Abhilash Inumella, co-founder and chief executive of the venture, in a telephonic conversation said, the startup will use the funds to ramp up its bandwidth capabilities.
Since the primary touchpoints on our platform are videos, bandwidth capabilities become imperative in our business. Every user consumes at least 60-100 MB per day. Hence, bandwidth and server expenses become a major cost in our business, he explained.
In its seed funding, the company had raised $1.3 million from Sequoia Capital, he added. Xiaomi, until now has invested into two digital media and entertainment startups Hungama and Sharechat.