Delhi-based document imaging solutions provider Newgen Software Technologies Ltd has announced that it has secured an undisclosed amount in funding from IDG Ventures and Ascent Capital.
Early last month, VCCircle first reported Newgen had raised funding from Ascent Capital and IDG Ventures in a deal which valued the company at $100 million. The deal also marked an exit for Headland Capital on its six-year-old investment.
“The investment will be used to drive global expansion particularly in the US and other major developed markets. Another significant area of focus would be product development and we would like to continue delighting our customers through product innovations,” Newgen managing director said Diwakar Nigam said.
Founded in 1992, New Delhi-based Newgen designs and delivers business process management and document management software. Its services include business process management (BPM), enterprise content management (ECM) and customer communication management (CCM) solutions.
The firm has strengthened its presence in the US market where it has been growing at a much faster pace than its other businesses. It has doubled its revenue since it first raised PE funding six years ago but has seen its bottom-line rise much faster. Its net profit rose almost eight times in the same period.
"Newgen is a global software product leader and a role model for budding Indian product startups. Enterprise software is a key area of focus for IDG Ventures India. 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.
Avendus Capital advised the firm on this transaction.
Aashish Bhinde, executive director at Avendus Capital, said, "Newgen is one of the few software product companies from India that has built a strong competitive position in the global technology market (in the BPM/ECM segments). They have been delivering best-in-class solutions to clients the world over and growing aggressively."
Newgen had first raised Rs 30 crore from Headland (then HSBC PE) in late 2007. It also raised a little over Rs 10 crore from SAP Ventures in late 2008.
(Edited by Joby Puthuparampil Johnson)