In Order to consolidate its position and reach out to overseas Indians, Rediff.com India has decided to acquire three India centric portals. These portals are hosted in USA, UK and Singapore.

An Indication to this effect was given by Rediff.com chairman and chief executive officer Ajit Balakrishan. While talking to The Hindustan Times, he said that the company has allocated US $25 million for acquiring these portals. Negotiations for these portals are in an advanced stage and one of the deals for the US company is expected to be signed in the next 15 days, he added. While declining to disclose the name of the company, he said that it would cater to the needs of US-based NRIs.

The company has raised US$80 million in two phases.

It had raised US$20 million through private placement in the first phase. In June 2000, another US $60 million was raised through American depository receipts (ADRs). The company has not used the proceeds of the ADRs. However, till date, the company has made an accumulated loss of around US $8 million.

Balakrishnan said the acquisition will be done through the combination cash and share swap. It is understood that the first acquisition will be of the order US $8-10 million.

The company is also investing around US $20 million for technology upgradation. It has also decided to install server in New Delhi, Hyderabad and Bangalore. Currently it has server in two locations USA and Mumbai.

On the revenue model of the company. Balakrishnan said currently 93 per cent of the income is from advertisements and 7 per cent from e-commerce. "The target is to reverse (93 per cent from e-commerce and 7 per cent from advertisement) the revenues stream in the next 10 years", he added.

According to Goldman Sachs, the company is expected to post a turnover of US $4.5 million in the current fiscal ending December 2000. But its earning before tax, depreciation and amortization (EBITDA) will remian in negative to the tune of US $11.7 million.