According to AFAQS, the hot rumor is that Facebook is all set to make its first acquisition of a product firm in India. Though Facebook has ignored to comment on the development reported by AFAQS but according to the word in the market, the social networking giant is in talks to acquire Bangalore-based product start-up Little Eye Labs. Sources close to the development said the deal is expected to be announced in the next few weeks.
If the deal goes as predicted then it will be a first for software product think-tank Indian Software Products Industry Roundtable (iSpirt), which helps Indian product companies find global buyers. It has facilitated the deal through its M&A Connect programme.
Little Eye Labs, the Bangalore based startup founded in May 2012, is known to build performance analysis and monitoring tools that identify and fix performance problems for Android app developers. The startup was formed by four geeks – Giridhar Murthy, who has worked at Apple Inc earlier; Kumar Rangarajan, who has worked at IBM and HP; Satyam Kandula, an IIT Kharagpur alumnus; and Lakshman Kakkirala, who has also worked at IBM, besides Yahoo!. Rangarajan is currently the CEO of Little Eye.
The startup has around seven employees and earlier this year had received investment between $100,000 and $200,000 from early-stage start-up incubator GSF Accelerator. GSF’s Brij Bhasin is also an advisor to Little Eye Labs.
Acquiring startups has been an ongoing activity by Facebook and this is not the first time that the social network has showed interest in startups built by Indians. Earlier last year Facebook had acquired Tagtile, a San Francisco-based startup that provides loyalty rewards and mobile marketing. The mobile app was built by IIT-Delhi (Abheek Anand) and IIT Kanpur (Soham Majumdar) alumnus. Tagtile was bought by Facebook the same week the social networking company acquired mobile photo sharing service Instagram for a billion dollars.