Startups on Acquisition Spree

Bangalore -- A number of young companies that still need succor from venture capital investors have started making strategic acquisitions to plug gaps in their businesses and ramp up quickly rather than wait to build from scratch. ValueFirst Messaging Pvt. Ltd, an enterprise communications company, that earlier this year raised 700 million rupees ($15.55 million) from investors in its second round of funding, is in advanced talks to buy three companies, including one abroad. The Gurgaon-based company will invest $18 to $22 million on these acquisitions by year-end, said Chief Operating Officer Kumar Apoorva.