Telstra buys a stake in mobile app developer Kony

The telco plans to expand its investment portfolio to 20 to 30 companies over the next three to five years

Telstra has invested US$18.3 million in Kony Solutions, a mobile application development company, for a stake in the business.

As part of the investment, Telstra will offer the company’s applications to business and enterprise customers.

Kony develops pre-built apps that can be customised and also allows businesses to develop their own apps. While the company is based in the US, it has an Asia Pacific office in Victoria.

The investment is part of a move by Telstra to expand its capability in its domestic mobiles portfolio and develop new growth businesses.

“For Telstra this is a win/win – we are investing in an innovative company and adding immediate value by being able to offer Kony’s products to our business and enterprise customers,” Mark Sherman, Telstra Ventures managing director, said in a statement.

“Kony’s suite of applications complements our existing mobility portfolio and enhances our mobile and cloud services offering for customers.”

The investment will help Kony expand its presence in the Asia Pacific area, according to Kony’s CEO Raj Koneru.

Telstra has previously invested in other US-based companies. In June last year, the telco invested $35 million in the Ooyala, an IPTV video company.

It has also invested in Australian company Dimmi, an online restaurant booking system. Other investments include Mandoe, IPscape and Whispir.

Sherman said the telco plans to expand its investment portfolio to 20 to 30 companies over the next three to five years.

“Our investments will be among the best emerging companies in the world each at varying stages of development,” he said. “We are already seeing some good success with investments such as Mandoe Media and Ooyala.

Follow Stephanie McDonald on Twitter: @stephmcdonald0

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