The Hindu Business Line : NetKraft may raise fresh funds

IN a bid to fund its next phase of growth, Bangalore-based software services firm Netkraft is likely to raise between $5 million and $8 million over the next few months. The company, which turned into black last fiscal following the restructuring of operations, is said to be in talks with venture capitalists, market sources said.

The company may utilise the fresh funding to meet its working capital requirements and infrastructure expansion plans. It may also invest in strengthening its sales and marketing set-up overseas.

NetKraft has raised close to $8 million in several rounds of funding till now. Venture funds Actis and JumpStartup own about 67 per cent in Netkraft, while promoters, employees and management among others hold the remaining stake.

Netkraft provides solutions and services for the retail and healthcare sector.

Original promoters Mr Atul Jalan and Mr Prashant Prakash who quit the company as part of the restructuring exercise continue to hold their stake of close to 11 per cent in the company. It is likely that the promoters may dilute their holding in the next round of fund infusion.

For the current fiscal, the company is likely to sustain a growth momentum at a rate of 50-60 per cent, which it achieved last year. It derives about 50 per cent of its revenues from its retail practice and the rest from healthcare and its technology solutions business.