Persistent Systems has announced that it has acquired Pune-based Hoopz.
What does Hoopz do?
It allows users of mobile to see “interesting” information without having to specifically search for it. Based on whatever keywords happen to be in the content you’re currently viewing on the mobile, whether it is in an app, or a document, or a website, like facebook, twitter, or anything else, or an email, sms, Hoopz will show you other content it believes you will find interesting. It will show you other apps, or information, or it will show you ads.
Based on the above description, Business Standard is calling Hoopz a “web discovery technology” company, while Medianama called it a “mobile ad firm”.
Interesting, Hoopz is not sold/provided to consumers directly. Instead they’ve chosen to go via the OEM route:
As a strategy, Hoopz is targeted towards hardware manufacturers than the application eco-system. “Hoopz is not hardware dependent, but as a technology framework layer it needs to be integrated into the operating system. Hence we prefer to work with OEMs. At present Hoopz is with over half-a-million handsets,” said Surekha. Going ahead the company will focus on international expansion into regions like APAC and China.
Why did Persistent buy Hoopz? Especially considering that Persistent now has a venture fund and could just have invested in Hoopz, like it did with wearable tech startup Hyginex, video calling iPad app Ustyme and life sciences company DxNow?
Here is what Anand Deshpande had to say about that:
“We did have the option to invest in the company through our venture arm too, but the technology and space that Hoopz is made us believe that acquiring them would be better,” said Anand Deshpande, chairman and MD, Persistent Systems. Deshpande also explains that though the application fits into the consumer internet space it can be scaled into the enterprise set-up too.
The acquisition fits in Persistent’s focus area of mobility and though Hoopz is consumer focused, Deshpande is betting on the data discovery platform than can be scaled to the enterprise segment. “Our objective is to align technology and the company. We keep looking at technologies and see how we can participate in them. This also means taking smaller companies to a bigger core group,” added Deshpande.