Zephyr Peacock India Fund has invested $10 million in Mumbai-based IT solutions provider Trimax IT Infrastructure and Services. Trimax offers services in systems integration, data centre services, and IT infrastructure management.
This is Trimax's second round of funding as the company had raised an undisclosed amount by selling a 10% stake to Banyan Tree Growth Capital Fund last year.
Trimax, which recorded revenues of around Rs 350 crore in FY10, is expecting to cross the Rs 500-crore mark this year. The company's revenues have grown by more than three times during the last three years, said Mukul Gulati, managing director of Zephyr Peacock. The PE firm typically targets investments of $5-10 million, with an ability to invest up to $15 million in a transaction.
"The main theme till now is that India has been an exporter of IT services. But the country itself spends less than 2% GDP on IT and related services, while the rest of the work is done manually. There is a need for efficiency and increased competitiveness by using networking and internet computers," said Gulati.
Trimax offers IT infrastructure solution on BOOT (Build, Operate, Own and Transfer) basis to corporates as well as to government clients. Trimax has built a pan-India network for services like technology support and troubleshooting.
The fresh round of funding will be used by Trimax for its working capital needs and development of the tier III state-of-the-art data center coming up in Bangalore, besides further recruitment and expansion. Its clients include Bharat Sanchar Nigam Ltd, Mahanagar Telephone Nigam Ltd, Ministry of Finance, Ministry of Tourism on he government side. Its private sector clients include Bharti Airtel, GTL, Dish TV, IndusInd Bank, among others.
The deal is the sixth investment of Zephyr Peacock, which has offices in Bangalore and New York. Earlier this year it invested Rs 22.5 crore ($4.5 million) in Metro Wireless Engineering India Pvt Ltd, a telecom services company.
Other portfolio firms include Time Technoplast (a polymer products firm), WLC India (a vocational training provider), Maxop Engineering (a die-casting firm) and Miles Software (a financial services software firm).