Northgate To Invest Rs 25 Crore In Social Networking Site

BSE listed Northgate Technologies intends to invest around 300 million 3 million pounds (around Rs. 25 crore) in its social networking venture, reports Business Standard. The investment will be via Axill Europe Ltd, the company’s wholly owned UK based subsidiary. Around 25 percent of the investment will be used for capital expenditure, and the rest towards advertising, marketing and hiring. I haven’t seen many ads of Bharatstudent in Delhi, but I did notice a few signboards in Hyderabad a couple of months ago. The company has also been spending on advertising on TV. Apart from that, the site is rather controversial, and allegedly hosted pornographic content and luring users from Orkut by posting scraps with links to that content. Maybe they’re planning to put their money to better use now…the portal claims a user base of 2 million, and plans to double the user base by September 2008. More on their plans at BS.