You are here: Home » Companies » News
Business Standard

Kellton Tech eyes $100 mn revenue, to raise $25 mn by next fiscal

The firm plans to acquire at least two firms of $10 million each in both the US and India

BS Reporter  |  Hyderabad 

IT services company Kellton Tech Solutions is targeting a revenue of $100 million by the close of the fiscal 2015-16 through a mix of acquisitions and a strong annual growth in existing business operations.

The BSE-listed company, which has operations in the US and India, plans to acquire at least two firms of $10 million each, in both the markets, by the end of next fiscal.

As part of its expansion plans, Kellton is opening its new office in California in the US, and would hire 500 more professionals across its operations, including 100 in Hyderabad.

In the previous fiscal, it had clocked revenues of around $35 million (Rs 200 crore) with a headcount of 650 individuals (200 in the US and 450 in India).

The New Jersey-headquartered company, which provides enterprise mobility solutions, mobile application development and internet-of-things, has offices at three centres in the US and two in India at Gurgaon and Hyderabad. Its customers include retail and e-commerce, telecom, media and publishing and education.

On fund raising plans, Niranjan Chintam, its founder and chairman, said the company would raise $25 million through a mix of equity and debt by the next fiscal-end.

“We would prefer to raise the money through institutional placement to a private equity via preferential allotment, with 40 per cent coming through equity and 60 per cent from debt,” Chintam said.

On the timeline for fund-raising, he said, “to achieve the $100 million revenue target, we have to raise them much before that and probably very soon”.

On emerging areas of interest for the company, Krishna Chintam, MD and co-founder, said the internet-of-things, SMAC (social media, mobility, analytics and cloud) and data security were its “sweet spots”, and added Kellton had been working on these areas significantly at its R&D centres.

While North America contributes a major 50 per cent to its overall revenues, followed by India and Asia Pacific with 30 per cent and Europe with a share of 10 per cent.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, February 06 2015. 20:46 IST
RECOMMENDED FOR YOU
.