With America expansion on mind, Newgen Software raises equity capital
The India-based company has raised US$17.61M equity capital from IDG Ventures India and Ascent CapitalBy Saloni Surti 06 Feb, 2014
Technology venture capital, IDG Ventures India and India-focused private equity firm Ascent Capital have invested in India-based Newgen Software in the form of equity capital. Based in the Indian capital of Delhi, Newgen Software is a provider of Business Process Management (BPM), Enterprise Content Management (ECM) and Customer Communication Management (CCM) solutions. It has raised INR 1100 million (approximately US$17.61 million) in this round.
Avendus Capital was the financial advisor to the transaction. The investment will be used to strengthen presence in USA and other major developed markets, as well as in new product development.
“The investment will be used to drive global expansion, particularly in the USA and other major developed markets. Another significant area of focus would be product development,” said Diwakar Nigam, Managing Director, Newgen Software.
USA is particularly important for Newgen as the software company has witnessed almost double growth in terms of sales revenue from its American operations.
Nigam shared with e27 that Newgen is planning to further expand its reach in North America, with particular focus on healthcare, shared services centers, government, apart from BFSI. As a step forward, the company has already opened new offices in Canada and Florida .
“Enterprise software is a key area of focus for IDG Ventures India, and Diwakar has been a pioneer in the space. We look forward to Newgen’s continued rapid growth across areas such as cloud and mobility,” said Sudhir Sethi, Founder, Chairman and Managing Director, IDG Ventures India.