Microland secures $11mn funding from Cargill Ventures

Microland Limited, a provider of IT infrastructure management and technical support services, announced on Tuesday that it has secured $11 million in funding from Cargill Ventures, Intel Capital, Trident Capital and Jafco.

The funds raised will enable Microland to invest in enhancing infrastructure and accelerate its growth in the 'remote infrastructure outsourcing' market. This is the second time around that the company is raising money after the $7.5 million it raised from ICICI Venture and J P Morgan in December 2004.

Commenting on the investment, Pradeep Kar, founder, chairman & managing director of Microland, said, "This funding will enable us to augment investments in infrastructure, capabilities and business acquisitions to capitalise on the large opportunity in the global remote infrastructure management services space."

Kar declined to specify the company's turnover and the quantum of stake he is divesting for this investment. All he said was that the company had been profitable for the past few quarters.

Microland at present has a client base of over 50 global customers ranging from a media company, global services company, banking and financial services institutions, multiple high tech IT companies, major software corporation to a diversified business conglomerate. The company employs close to 1,600 professionals.

According to a statement from the company, infrastructure management services is an untapped market opportunity of $110 billion that provides significant growth prospects for Indian IT services companies.

Industry estimates that IT services exports from the remote infrastructure outsourcing market in India will grow from $800 million in 2005 to $7 billion by 2010.

"We believe that remote infrastructure management is a strongly emerging IT services category that will accelerate as companies recognise the tremendous benefits and ROI that is attainable," said Deepak Malik, managing director of Cargill Ventures.

"The investment in Microland is a result of Intel Capital's interest in supporting specialised IT services companies in India, as they meet the needs of customers globally," added Kumar Shiralagi, director, Intel Capital, India.

"The investment by Intel Capital in Microland follows the establishment in December 2005 of a $250 mn Intel Capital India Technology Fund, intended to help stimulate technology innovation in India and to support growth of the country's IT industry."