It looks like Cyanogen is closing in on an agreement to raise $110 million in funding but, contrary to previous rumors, Microsoft will not be among the groups investing in the startup. Cyanogen, which develops the popular Android-based CyanogenMod interface for smartphones, has made quite a name for itself over the past few months by claiming that it will remove Google from Android which is why it made sense that Microsoft would invest in the startup.
Cyanogen Inc. is close to an agreement on a new $110 million round of financing, people with knowledge of the matter said, as the startup seeks to get its version of Android software into more smartphones. PremjiInvest, the investment vehicle of Wipro Ltd. Chairman Azim Premji, will be among the investors in the new funding, said the people, who asked not to be identified because the news isn’t public. Microsoft Corp. decided not to invest after negotiations, although it may still be interested in a commercial deal to get its software onto Cyanogen’s mobile operating system, one person said. Cyanogen develops an Android-based interface for smartphones that lets users customize their devices and content. Microsoft had held talks with the Palo Alto, California-based startup to explore an investment with the goal of putting Microsoft’s applications on Cyanogen software, said one of the people.