Slowdown continues; VCs invest $13.4-M in BPO sector during Oct-Dec. 2004

The decline in VC investments in the BPO sector continued, with only 2 Indian companies raising funds to the tune of $13.4 million during the quarter ended December 31, 2004. The quantum of funds invested, as well as the number of deals, was significantly lower than in the same period in 2003 (during which 5 BPO companies raised over $50 million). In the immediate previous quarter (July-September 2004), only one firm, ICICI OneSource, had managed to raise VC funding (of $35 million).

V. Prabhakar Ram founded Outfield Knowledge Works, the holding company of Newgen Imaging Systems, a Chennai based provider of end-to-end services for the ePublishing industry, raised $9.4 million from The Carlyle Group. With over 500 publishing professionals, Newgen combines traditional typesetting skills with high-end E-publishing technologies to present a cost effective outsourcing solution to global publishers.

Kishore Mirchandani co-founded Outsource Partners International (formerly itAccounts), a Bangalore and Los Angeles, CA-based BPO firm focused on finance and accounting functions, has raised a $4 million second round add on from new investor Cargill Ventures. OPI’s services include accounts payable, accounts receivable, payroll, reconciliations and financial reporting. The company, which has over 600 employees, also offers tax return preparation services and document management solutions. OPI had raised $20 million from Trident Capital and Winston LP in November 2003.

VC investments in BPO during the Quarter ended December 2004

Company Amount
(US$ Million)
Newgen Imaging 9.4 The Carlyle Group
Outsource Partners Intl. 4 Cargill Ventures

This report is brought to you by the TSJ Media, which tracks VC investments in India and Indian-founded companies worldwide.

Latest Columns

Sri Lanka partners with Venture Engine to boost IT exports

Spark iT is the newest brainchild of CCC (Ceylon Chamber of Commerce) which has been launched in partnership with VE (Venture Engine) to provide a veritable platform for upcoming Information and Communication technology (ICT) entrepreneurs. The program has the goal of aiding these entrepreneurs to elevate their businesses to the next level by helping them […]

SEO Outsourcing – a new focus area

August 30, 2011: Internet has become an integral part of human life today. We require the help of search engines in any thing we do now. Search engines have completely influenced human, now its time for us to influence the search engines. Today companies are experimenting with many strategies to get their website of WebPages […]

Speak Your Mind