Virtusa Corp raises $20m in Series D round funding

Focus Ventures leads round that also included participation from existing investors

Virtusa Corporation, a provider of software development and related IT services, yesterday announced that it has raised $20 million in its Series D round of financing.

Focus Ventures led the round that also included participation from existing investors Sigma Partners, Charles River Ventures and Globespan Capital Partners.

"The proceeds of this round will be used for general corporate purposes, global expansion, and sales and marketing," said Kris Canekeratne, chairman and CEO of Virtusa Corp.

"Virtusa has made excellent progress. Our revenue grew by 74% with profitability in our 2004 fiscal year that ended March 31. Virtusa has posted 11 consecutive quarters of quarter-over-quarter growth demonstrating stability and predictability of its business model."

Virtusa has two Advanced Technology Centres (ATC) in Hyderabad and had in February announced plans to expand its operations in India. It will be adding close to 600 people in its new ATC in Chennai.

The expanded workforce is expected to be in place over the next one year.The new ATC is the company's third centre in India and the first in Chennai. At present, 1,100 of the 1,600 global workforce of Virtusa are located in Hyderabad.

Virtusa builds complex mission-critical solutions for its clients through a comprehensive array of software development and related IT services designed to increase IT efficiencies.

Virtusa's 'Productization' methodology unleashes the full potential of clients' software assets by consolidating disparate software assets and applications into one or more organisation specific software platforms.

These platforms are then shared across several lines of business and vertical markets to immediately reduce total cost of ownership , reduce time-to-market, and accelerate revenue creation.

"Virtusa's industry leading growth is due to its highly differentiated value proposition, an outstanding cadre of technology professionals, and its blue-chip client base. Most importantly, Virtusa's growth is a direct result of the exceptional talent, effort, and dedication of over 1,900 IT professionals. We are fortunate to have an outstanding global team that relentlessly focuses on creating client delight and building long-term client relationships," added Canekeratne.

Virtusa specialises in increasing business agility, streamlining redundancies, and achieving economies of scale for its clients through a comprehensive set of IT services.

Virtusa's blue chip client base includes Fortune 1,000 enterprises and leading software product companies from the financial services, telecommunications, retail, and other industries.