The company has recently set up a merger and acquisition team to scout for start-ups working on new and interesting technology that could add value to its business.

Sources said Micromax is in talks to raise as much as USD one billion from global investors, including Japan's SoftBank.

A Micromax spokesperson said "As a company policy, we do not comment on any market speculation." SoftBank did not respond to queries sent to the organisation in this regard.

In 2010, Micromax had filed for a public listing but later shelved the plans citing poor market conditions.

Sources said funds would be utilised to boost development of new products and technology as the company competes head-on with traditional rivals like Samsung and newer entrants in the
market like Xiaomi.

Analysts speculated investing in start-ups would help Micromax differentiate itself in the crowded smartphone market, especially in case of Android devices.

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