By Krithika Krishnamurthy
BANGALORE: Risk-capital investors IDG Venture and Ascent Capital have bought a minority stake in Delhi-based technology solutions provider Newgen Software Technologies.
The venture firms have put in Rs 110 crore in the two-decadeold enterprise software maker that draws a bulk of its clients from the banking sector with products that help in document management and digitisation.
About Rs 60 crore from this latest round of funding was used to provide an exit to early investor Headland Capital Partners, which had put in about $7.5 million (Rs 47 crore) along with SAP Ventures in 2008. "We came into the market early. I wanted to build IP (intellectual property) and not get into the labour arbitrage business that is characteristic of service-based industries," said Diwakar Nigam, CEO of Newgen Software.
The 59-year-old who has a Masters in computer science from IIT-Madras said his company counts TCS, HP, and HCL as its customers. The company, a dominant player in the banking, financial services and insurance space, also has a footprint in healthcare, oil and power. Notably, it has worked with UIDAI, Airtel, Bank of Muskat, drugmaker Astrazeneca, and Bank Muscat.