Bangalore-based start-up Devas Multimedia, a satellite-based mobile services company, will receive funding of $75 million (Rs 317 crore) from Europe’s largest telecom firm, Deutsche Telekom (NYSE: DT). The German telco is picking up a 17 per cent stake for $75 million through its Asian arm, which values the company at $443 million, according to a report in The Economic Times. Devas is a new satellite-based, multimedia services company focused on the Indian consumer market. The company plans to deliver its service via a hybrid satellite-terrestrial network to mobile devices in India.

Devas is backed by US-based venture capital funds Columbia Capital and Telecom Ventures. Both the funds, which had invested in 2006, have over 49 per cent stake. This is the first investment of Deutsche Telekom in India, which will be allotted 28,349 equity shares. Devas has already received a go ahead for the fund infusion from Foreign Investment Promotion Board. The deal would take foreign holding in Devas to 70.41 per cent.

Devas works in the field of software development and research & development (R&D) for multimedia content creation and transmitting content using internet, satellite and terrestrial broadcasting. It is currently working on digital multimedia broadcasting (DMB) mobile TV project with Indian Space Research Organisation (ISRO) to provide videos and TV channels on mobile phones. The services shall commence with launch of ISRO’s GSAT-6 satellite in the next couple of years.

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