IDG Ventures has joined fellow corporate venturing units SAP Ventures and HSBC Private Equity (Asia) as an investor in Newgen Software, an India document software management company. The company has raised a reported $25.25m to date. In the latest round, IDG Ventures was joined by private equity firm Ascent Capital in a $17.6m (INR 1100m) expansion capital round.
“The investment will be used to drive global expansion, particularly in the USA and other major developed markets. Another significant area of focus would be product development,” said Diwakar Nigam, managing director, Newgen Software.
The target company provides Business Process Management (BPM), Enterprise Content Management (ECM), and Document Management System (DMS) services, with over 1100 installations in over 53 countries. Newgen, founded in 1992, is headquartered in New Delhi. The company has over 1100 employees and its software development centres are in New Delhi and Chennai. Regional Sales and Support offices are located in India, the Middle East, Europe, Africa & the USA.
“We are extremely excited to partner with Newgen, which is a global software product leader and a role model for budding Indian product start-ups. Enterprise software is a key area of focus for IDG Ventures India, and Diwakar has been a pioneer in the space. 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 was the financial advisor to the transaction.