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Rediff invests in ICICI portals

Our Bureau

MUMBAI, Sept. 13

ICICI Ltd today announced a strategic alliance with Rediff.com India Ltd for enhancing its Internet presence in the country.

As part of the alliance, Rediff.com will take a 10 per cent equity stake in ICICI's www.traveljini.com and a 5 per cent stake in www.billjunction.com in an all-cash transaction.

www.traveljini.com is a comprehensive travel planning and booking site launched by ICICI this June. www.billjunction.com, which allows customers to receive utility and other bills on the Internet itself and then allows them to make payments online, was l aunched in May.

Both these Internet properties will be exclusive channels for travel and bill payment on the Rediff.com Web site. Speaking to newspersons here today, Mr K.V. Kamath, Managing Director, ICICI Ltd, said the arrangement will benefit both companies as both t he Web sites will get an instant entry to Rediff.com's large customer base and Rediff.com users will gain immediate access to two online services.

Mr. Kamath, however, declined to reveal the amount paid by Rediff.com to ICICI for picking up equity stake in the two Web sites.

According to him, ICICI plans to limit its total investments in the e-commerce sector to Rs 100 crore. The institution has so far invested about Rs 50 crore in this sector and is looking at making fresh investments of another Rs 50 crore in the next six months, the ICICI chief said.

``Our strategy is to recover most of these investments within the next six months,'' Mr. Kamath said. According to him, the institution is planning to set up a holding company for all its e-commerce properties and a decision to this effect will be taken in the course of the next few weeks. Mr. Kamath also did not rule out the possibility of having other joint venture partners for its internet ventures.

ICICI officials said the institution has so far invested about Rs 3.50 crore in www.traveljini.com and has plans to invest another Rs 20 crore while it has put in Rs 2 crore in www.billjunction.com and is looking at investing a further Rs 12 crore.