Indian investor IDG Ventures and Canadian firm Ascent Capital have purchased a minority holding in software solutions provider Newgen Software Technologies. The stake acquisition is valued at INR110 crore, according to The Economic Times.
The 20-year-old enterprise software maker gets most of its customers form the banking industry with its document digitization and management products, the report said.
From the amount that the two risk-capital investors put in, around INR60 crore was used for Headland Capital Partners' exit. In 2008, the latter had invested approximately $7.5 million (INR47 crore) together with SAP Ventures, the report detailed.
Newgen chief Diwakar Nigam said: "We came into the market early. I wanted to build IP (intellectual property) and not get into the labour arbitrage business that is characteristic of service-based industries."
According to Nigam, his company's clients include TCS, HCL, and HP. A dominant figure in the insurance, banking, and financial services sector, Newgen has also tapped the healthcare, power, and oil industries, The Economic Times reported.
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