MetricStream gets compliance solns to India

MetricStream, a US-based provider of software applications for compliance management, has announced its solutions for various compliance needs of Indian firms listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

The firm, with its largest operations in Bangalore, has recently partnered Nasdaq for providing compliance products and solutions to the companies listed in Nasdaq.

"Usually, companies with a topline of $200-$300 million, spend $1-2 million each towards meeting various compliance needs in the market where they are listed. Our software and solutions help them manage their compliance processes in just one-tenth of the usual costs," said Gunjan Sinha, Chairman, MetricStream.

According to the Clause 49 of the Listing Agreement to Indian stock exchange, the listed companies in India are required to report to the Securities and Exchange Board of India (Sebi) about the company's performance in 15 different areas including financial, HR management and the business processes, on a quarterly basis.

That the software solutions being offered by the company automated the whole process associated with meeting the compliance needs. Presently, TCS is building a whole range of compliance practices using MetricStream solutions.

Sinha said that the company was also looking at India as a big market with many Indian firms planning to list overseas. "Many Indian companies are looking at global capital markets and our estimate says that at least a dozen Indian companies will be listed on foreign stock exchanges including Nasdaq in the next 3-4 years," said Sinha. These represent an opportunity for MetricStream.

Sinha, who has successfully incubated many start-ups including WhoWhere and eGain, had co-founded MetricStream in 2001, along with Shelly Archambeau who is now CEO of the company. During the last six years, the company has raised funding of $100 million. Kleiner Perkins is one of the prime investors in the company.

Presently, MetricStream has a headcount of 125, with 100 of them based out of its office in Bangalore. Sinha said that during the fast few years the company focussed on building the platform and the solutions. In 2004, it hit the market and has since been growing by 200 per cent per year. MetricStream, which has invested about $40 million towards R&D during the last five years, has so far secured eight patents.

The company is soon going to organise a series of training workshops and seminars in India with experts from around the world, to provide offline training to corporates regarding western regulatory compliance requirements including those required by the Sarbanes-Oxley Act.