HSBC Private Equity Asia, a subsidiary of HSBC Asian Ventures Fund, on Monday said it pumped $7.5 million into New Delhi, India-based Newgen Software Technologies, a company that focuses on document imaging and work flow management systems.
Imaging technology can help companies collate, retrieve, and present documents. Such business processes occupy a global market valued at roughly $10 billion to $12 billion and expected to climb steadily, according to analysts.
“We have to convince them that we are long-term players and we are going to take care of their requirements,” Newgen CEO Diwakar Nigam said. “I believe the investment coming in from HSBC group strongly reinforces this point.”
Newgen serves over 30 financial and insurance companies including Indian and Middle Eastern private sector banks. Its Indian customers are ICICI Bank, Max New York Life, and the Indian units of Deutsche and HSBC Bank, among others. In the Middle East, customers include the Mashreq Bank in UAE, Abu Dhabi Commercial Bank, and the Arab National Bank in Saudi Arabia.
The funding raised will be used toward expansion into international banks and insurance companies in new markets in the United States, Latin America, and European Union.
Newgen reported revenue of $15 million last year and is targeting $28 million in the current financial year. It competes against IBM, which acquired FileNet, and EMC, which acquired Documentum. Recently Indian firm Stex Software was acquired by 3i Infotech, an Indian software services company.
Source: Red Herring