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Mr Ranjan Das

Our Bureau

Mumbai, June 4 Business software maker SAP India intends to invest about $4-5 million each in at least six emerging technology firms over the next 18 months through its venture capital arm, SAP Ventures.

The company is looking at funding early-stage companies that provide enterprise IT solutions, managed solutions, ITES services and other innovative offerings, Mr Jai Das, Partner, SAP Ventures, said on the sidelines of the SAP Summit here in Mumbai.

“Ideally we would pick up anywhere between 2-20 per cent stake in such companies and stay invested from a long-term perspective,” said Mr Das.

However, Mr Das did not give out the exact amount that the company has earmarked for funding early-stage companies in India.These investments would be a part of the $1 billion commitment made by the company in 2006, said Mr Ranjan Das, President & CEO, SAP India Subcontinent.

SAP generally invests in companies with revenues of $5-10 million; the company prefers to generally exit via the IPO route.

Globally, SAP Ventures has invested in about 38 countries.

SAP India has been named as the ‘Jewel in the Crown’ of SAP worldwide as it has clocked growth of 67 per cent in the software license revenue in the first quarter of 2008. While small and mid-size revenue grew by 43 per cent, consulting and education revenue grew by 34 per cent and 100 per cent respectively, said Mr Bill McDermott, President & CEO of SAP Americas.

For the next fiscal SAP has given a guidance of 24-25 per cent growth in revenue, in spite of the US credit crunch.

Reuters reports: Improving profitability is the top priority for SAP, the outgoing co-Chief Executive, Mr Henning Kagermann, told shareholders on Tuesday. “We still have room for improvement in our operating margin compared with our rivals,” Mr Kagermann said at the company’s annual general meeting.

SAP aims to increase its operating margin to between 28.5 and 29.0 per cent this year from 27.3 per cent last year, a target that Mr Kagermann confirmed on Tuesday.

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