Midas Project Midas Communication Technologies Pvt. Ltd (Midas or company) is a Chennai-based Indian telecommunications equipment company which designs affordable and appropriate telecom access solutions for both urban and rural areas in emerging markets.     The companys flagship product is BroadbandcorDECT, which is based on the European Digital Enhanced Cordless Telecommunications (DECT) standard. The company is also about to deploy a GSM access solution that is specifically designed for high modularity, low power, high reliability and low subscriber densities. It is also developing a 4G voice and data platform based on the IEEE 802.16e standard (Wimax-e) that will have applications for both urban and rural voice & broadband data requirements.  The company also offers some wireline products, namely Ethernet switches and ADSL and Ethernet access systems that connect the backhaul to residential and corporate buildings.   The company was founded in 1994 by a group of alumni of the Indian Institute of Technology, Madras (IITM) to develop and commercialize data and voice last mile access solutions for India and other emerging markets. The founders include Rene Abraham, who is the Chief Technology Officer, and Shirish Purohit, who is currently the Chief Executive Officer and the head of Marketing and Sales. Both Mr. Abraham and Mr. Purohit have more than 20 years of experience in the telecommunication electronics industry.   Midas focuses on product design and deployment and outsources its manufacturing to world-class contract electronic manufacturers. This allows the company to scale up or down its manufacturing as required, in order to meet customer demand and avoiding high capital expenditures.  Midas is seeking $24.5 million in equity funding to scale up its operations by:  - continuing to develop its family of access corDECT products while targeting new clients in other low-income, low tele-density countries;  - expanding market reach through increased sales & marketing efforts;  - deepening existing customer relationships; and  - continuing R&D on new promising technologies The project is expected to achieve the following development impacts:  - Benefit Consumers in Rural areas:   The ultimate beneficiary of Midas technologies will be the end-user in emerging and rural markets whose current access options are either prohibitively expensive or entirely absent. The end-user will benefit by having access to reliable broadband data and voice service at better qualities and lower costs leading to further economic development in rural areas. Increased access to telecommunication will indirectly contribute to economic growth; a recent McKinsey study cites that a 10% increase in tele-density contributes to 0.6% of GDP growth.  - Expand Access to Telecoms in emerging markets, including rural areas:   Existing telecom access solutions have substantial infrastructure requirements. Such infrastructure is typically available in high tele-density urban and semi-urban markets but is difficult to extend to low tele-density rural markets with poor infrastructure. Traditional telecom networks have only incidentally benefited villages in the periphery of well-connected urban centers and major transportation lines. Rural teledensity in India currently stands at 8% as compared with approximately 60% in urban areas.  The Indian government aims to provide mobile phone access to an additional 270 million people, and to expand the geographical coverage by 20%. Midas low-cost telecom solutions are specifically designed to meet the needs of rural populations, and fit well with the governments plans to increase rural teledensity in India.     - Support an Indian IT product company that is developing core intellectual property:   The Indian IT industry contributes more than 4% to GDP and accounts for more than 20% of exports, yet the Indian IT market is primarily comprised of services companies. India regularly produces world-class engineers but this talent has typically immigrated to the United States to find challenging work.  An investment in Midas would support and demonstrate the ability to product promising, world class technology companies in India.   - Support a company located in a region has not seen significant private equity/venture stage investment:   Most IT investments are focused on companies based in Bangalore, Hyderabad, Mumbai or Delhi.  Companies outside these traditional IT investment hubs tend to have a difficult time raising capital.  An investment from IFC would benefit a company that is not located in this corridor and should spur more private equity/venture stage investor interest in Chennai.