Vignani Tech wraps up Rs 18 crore funding

Vignani Technologies, the product engineering services company, has announced closure of its Rs 18 crore Series A funding by Intel Capital, JAFCO Asia and KT Venture Group.

The company has also acquired four Fortune 1000 customers in the semiconductor equipment, instrumentation and renewable energy space on the back of its royalty-based services model.

Kumar Ramachandran, CEO of Vignani Technologies, said, "Vignani's rapid growth is through its high-end electro-mechanical product design capability. Our royalty-based services model has attracted significant attention from large capital equipment manufacturers. This funding will help us strengthen our infrastructure and allow us to hire engineers and scientists required to meet our aggressive growth plans."

According to estimates, the total offshore engineering spend will grow to Rs 1,350-2,025 crore by 2020, and India, with its large talent pool and experience in engineering services, may grab 25 per cent of this opportunity, said Ramachandran.

"Domestic engineering firms have a key role to play in today's globalised economy, by making available cost-effective services which can help increase revenue and growth margins for customers worldwide. Vignani is looking with renewed interest to industry verticals which are engineering-intensive, including semiconductor equipment manufacturing," said Kumar Shiralagi, director, Intel Capital.

Byron Askin, senior director, JAFCO Investment (Asia Pacific), said, "Engineering services are the next growth driver for India after its phenomenal successes in the IT and BPO sectors. This, coupled with the rapid progress of Vignani, motivated us to go for this investment. We are also confident that the management is quite competent to make Vignani a profitable venture."