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
|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.