Emagia set to invest $4 mn in Hyderabad

Company raises $7 mn in venture capital funding

US-based Emagia Corporation, a provider of cash flow management solutions, announced  that it had raised $7 million in its third round of venture capital funding.

The company plans to invest $4 million on tripling its research and development, product support and implementation team in Hyderabad over the next 12 months.

Addressing a press conference Veena Gundavelli, chairperson and founder of Emagia Corporation, said: "The company would soon embark on the expansion of its products and services both in the US and in Hyderabad. We are also looking expanding our reach and to penetrate newer markets and that is why the funding was required."

She said that Timeline Ventures did the funding along with existing investors Sigma Partners and West Bridge Capital.

The company had raised $7 million each in two earlier rounds of funding in 2000 and 2003. Of the total $14 million raised in two earlier rounds of funding close to 60 per cent was invested in the Indian operations, Gundavelli said.

Emagia is also in active talks with leading Indian software services companies like Satyam, Infosys and Wipro, which have significant BPO operations, for a tie-up which will see Emagia's cash flow management solutions being offered to the BPO clients of these companies.

As part of the expansion, significant increase in infrastructure facilities is also being planned which includes additional facilities, communications and systems.

The company is also investing a significant amount on employee welfare programmes. Out of the total employee strength of 150, the company currently has 100 employees in the country. "There would be a three fold increase in headcount over the next 12 months in our Indian operations," she said.

Refusing to divulge the revenues, Gundavelli said that the turnover of the company was at the present moment "less than $50 million".