Microsoft Ventures may invest in Hyderabad startup NowFloats for India foray

Microsoft Ventures is in talks with a Hyderabad-based startup NowFloats, which if successful will mark the first investment in India by the early stage investment arm of the global software maker.
The deal could see an investment of up to $ 2,50,000 in the two-year old company according to three people with knowledge of the developments.

NowFloats focuses on helping small and medium enterprises (SMEs) to create and maintain a digital presence through a basic text message without the need for a smartphone. The company, incubated at Microsoft's Bangalore-based accelerator, has also launched a mobile app, which allows users to discover businesses and deals, based on their location.

The transaction is expected to be completed by end-August, according to sources privy to the talks.
In an email response to a query by ET, a spokeswoman for Microsoft Ventures said the seed fund has not invested in a startup in India.
Microsoft Ventures, which owns and operates six accelerators across the globe, including Beijing, London, Paris, Tel Aviv and Berlin, has so far, invested in 10 startups around the globe through its seed fund.
In an earlier conversation with ET, Mukund Mohan, director, Microsoft Ventures, had said that the accelerator would look to make between three and five investments in early-stage ventures by the end of its financial year ending June 30, 2014.
"Typically, we'll invest in a company that has some revenue," Mohan had said.
NowFloats received a first round of funding last August from angel investor network Mumbai Angels and seed-to-early stage venture capital firm Blume Ventures.