New Delhi, (PTI): Global IT major Microsoft has picked up 35 per cent stake in Oxigen Services for an undisclosed amount, to help the latter expand its business using Microsoft products.

Oxigen is an IT enabled multi-services platform and distributor of recharges, prepaid subscriptions and bill payments.

Post the partnership, Microsoft would have 35 per cent stake in the company, South Africa-based Blue Level Telecom would have 35 per cent, while the rest would be with Oxigen.

Prior to this Blue Level Telecom had 50 per cent stake in Oxigen.

Oxigen and Microsoft would provide mutual assistance to each other in exploring new business opportunities, Oxigen group Chairman and Managing Director, Promod Saxena, told reporters here.

However, he declined to reveal the size of the deal.

By partnering with Microsoft, Oxigen expects to expand its business rapidly in the virtual payments and distribution space using Microsoft Web and Windows mobile-based technologies, as well as getting access to Microsoft's advertising services.

"Microsoft has been active in building services and technologies to support the growth of mobile communications for many years, and we believe our relationship with Oxigen will be a win for the consumers both companies serve," Microsoft General Manager Business Development and Strategy, Peter Mansour, said.

The company also plans to expand its retail presence by having 250,000 touch points by 2010 from the current 50,000.

The company also expects a 20 per cent jump in its net profit at $180 million over $150 million registered during last fiscal.