SAP Venture, the venture capital arm of enterprise software maker SAP, has invested Rs 10 crore in New Delhi-based software product company Newgen Software Technologies Ltd for a minority stake. This follows a $7.5 million investment by HSBC private equity in January this year. Newgen claims to be a market leader in Business Process Management (BPM) and Enterprise Content Management (ECM), with a global footprint of about 700 installations in over 30 countries. The company provides solutions in sectors such as banking, education, telecom, manufacturing, among others.
"There are obvious synergies between the products of SAP and Newgen and the investment will lead to closer working of the two companies, which will help Newgen to grow faster and garner larger share of the fast growing BPM market," said Diwakar Nigam, MD & CEO of Newgen.
The new funds raised would be used for continued growth, including product development. The company also plans to expand its global presence, especially in USA. The company is targeting expansion of its sales and marketing operations from 30 countries at present to 100 countries in next four years. Newgen was founded in 1992. It has over 1,000 employees, which it plans to increase to 1,600, and its software development centers are in New Delhi and Chennai. In FY08 Newgen reported revenues of Rs 93 crore.
In July this year SAP Ventures led a $ 9.5 million in Series B financing of iYogi, a Gurgaon-based remote technical support provider. In June this year SAP Ventures had said that it is looking to invest about $4-5 million each in at least six emerging technology firms over the next 18 months, picking anywhere around 2-20% stake.