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Vinson Kurian

Funding of up to $40 m for an undisclosed stake in the company

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Thiruvananthapuram Jan. 26 The Technopark-based SunTec Business Solutions is close to finalising a second round of venture funding of up to $40 million for an undisclosed stake in the company.

"We have short-listed two major private equity investors from abroad for raising funds in the region of $15 million-40 million," said Mr K. Nanda Kumar, President and CEO. The deal will be struck `very soon.'

Investors

The unlisted transaction billing and pricing solutions provider is Kerala's first and only IT products player yet to attract venture capital funding from abroad.

The Singapore-based Schroder Ventures (now Symphony Capital) had invested $6 million sometime back for a 19 per cent stake.

The incoming investor has the option of buying out Symphony Capital, but the latter has expressed the wish to stay on, Mr Nanda Kumar said. It would most likely to continue with a reduced stake. Mr Kumar, founder, and associates own 81 per cent in the company.

SunTec prefers venture funding to an IPO at this juncture in order to avoid a mix-up between pursuing core competencies and playing the stock in the market. The company is currently engaged in aggressive expansion of business that brooks no diversion of interest.

Industry leaders across the globe have endorsed the company's billing solutions, which are based on the concept of `dynamic relationship-based pricing.' SunTec, which clocked revenues of $12 million during 2005-06, has had at least 250 installations of variants of the flagship TBMS product in India, the US, Indonesia, Europe and theWest Asia.

Prominent among clients are Comcast and Cable One in the US; HSBC (Global), ING Bank and Lloyds in Europe; Batelco of Bahrain; and HFCL (Punjab) and ICICI in India.

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