New York-based Connectiva Systems Inc., a provider of revenue assurance software solutions to telecom operators, has raised $17 million in Series D round of funding. The round was led by NEA – IndoUS Ventures joined by other investors : IFC and SAP Ventures. Existing backer Ovation Capital also participated in the round. This round takes the funding raised by Connectiva to more than $30 million.
“We are now getting significant traction and this will be growth round of funding for us,” said Avi Basu, CEO and Founder of Connectiva. The focus of Connectiva till now has been on emerging markets, in MENA and Asia, but now it is expanding its focus. “We are close to signing a big client in Europe, which we will be announcing in next few weeks,” added Basu.
The company is now increasing its focus on developed markets of Europe and US, while keeping the focus on emerging markets, said Basu in an interview to VC Circle. It also plans to tap the Chinese market. Most of the funds will be allocated in this regard to expansion of its client base. The funds will also be used expand its infrastructure and Indian operations. The firm plans to have a Delhi office soon.
In a study earlier this year Connectiva said that Indian telecom operators forgo almost $900 million in revenue due to leakages every year. Though figure for India was not disclosed, Connectiva has saved about $500 million in revenues of telcos across the world.
In FY07, Connectiva reported revenues of $10 million. It expects revenues to be somewhere around $20 million this fiscal year and expects to double that in FY09. As it has raised four rounds of funding, Connectiva is committed to provide an exit to its investors in the next three years, said Basu.
Vinod Dham, from NEA-IndoUS Ventures and Pravan Malhotra, from IFC will join Connectiva’s board of directors.
Connectiva is a provider of revenue and risk management solutions for the telecommunications industry. Some of its clients in India include Bharti Airtel, Idea and BSNL. Its international clients are the Zain Group, Wataniya Telecom, Tunisiana, Etisalat, Cable & Wireless. For system integration it has tie-ups with IBM, TCS, HCL, Satyam, among others. Headquartered in New York, Connectiva has offices globally and employs over 300 people at its Global Innovation Center in Kolkata, India.
Headquartered in New York, Connectiva has offices globally and employs over 300 people at its Global Innovation Center in Kolkata, India. “Connectiva does far more than mere outsourcing in India – we develop the very core of our intellectual property there,” said Avi Basu, CEO of Connectiva Systems.
In a press note issued from the company, Basu said that the company’s revenues have doubled each year for the past several years, and its Kolkata-based work force has grown from 50 people three years ago to 300.