NETANYA, Israel — Media reports in Israel claim that startup Modu Ltd. (Kfar Saba, Israel), which has developed a modular cellphone concept, has received commitments from investors for $100 million.
According to the reports, the funding was received according to a valuation of $150 million, an unusually high valuation for a local start-up. They also suggest the eventual investment could exceed $100 million.
Modu's chairman and CEO is Dov Moran, the inventor of the USB flash drive, who had established m-systems and sold it to SanDisk for $1.55 billion.
Modu has launched what it claims to be the world's first "modular mobile phone", supported by companies such as SanDisk, Texas Instruments, Telecom Italia's mobile division TIM, BeeLine (VimpelCom) of Russia and Cellcom in Israel.
The concept allows consumers to use a slimmed down, standalone mobile phone — which is also called modu — and then enclose it in a large variety of modu "jackets" and modu "mates" to reflect the user's individual mood, tastes and need for functionality.
Modu will be sold with two jackets. Modu mates, into which the cellphone can be slotted, are consumer electronics products such as DECT phones, digital picture frames, alarm clocks, boom boxes, photo printers, digital cameras, personal media players, personal navigation devices, built-in car infotainment systems and ultra-mobile PCs.
First products are expected in the fourth quarter of this year. Moran stated more than once that his company aims to radically change the mobile world.
Modu's partners also include mainstream consumer electronics manufacturers who have signed up to develop modu mates such as MP4 players, digital photo frames, cameras and DECT phones. One of the first such partners is car multimedia and navigation provider Blaupunkt.
Lifestyle, entertainment and fashion companies, including Universal Music Group, are also part of the modu ecosystem, partnering with the company to design specific modu jackets.
Other content and application providers include Card Guard, Tele Atlas and WorldMate.
Apart from Texas Instruments, the company's suppliers and manufacturing partners include Amphenol, ChiMei, In4Tel, Renesas, RiTdisplay, SKY MobileMedia and Varta.
