Info-tech

Netcore Cloud mulls acquisition ahead of IPO

K V Kurmanath | | Updated on: Jan 15, 2022
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Rajesh Jain’s cloud venture to hire 300 engineers

Rajesh Jain, who hit the headlines in the early dotcom era over 20 years ago when he sold his India World to Sify for over ₹500 crore, is getting his SaaS company Netcore Cloud ready for an IPO later this year.

With a revenue run rate of ₹600 crore, the company is planning to hire about 250-300 engineers in the next few months before it goes public, taking the total number of employees to 1,000.

The firm acquired three companies -- Quinto, Boxx, Hansel in the last two years.

“We are planning to acquire a company that can give us a good customer footprint (in the US) or a company that can complement our products,” Rajesh Jain, Founder and Managing Director of Netcore Cloud, told BusinessLine.

Describing his company as a ‘proficorn’, a company that never raised funds yet profitable, he said the company would use accumulated profits to acquire a company with a ticket size of $50-100 million to give it an edge in the US market.

Netcore Cloud offers companies martech (marketing technology) solutions that helps banking, financial services, banking, retail and telecom companies to engage with their customers and help them retain the customers.

Strong revenue base in India

Unlike most of the cloud firms that target the Western markets, Netcore Cloud has a strong base in India. About 85-90 per cent of its revenues come from India, with the Emerging markets of West Asia and Africa chipping in 12 per cent and 3 per cent from the US.

“We are going to change this (revenue break-up) in the next two-three years. We would like to see the Emerging markets and the US contributing 20 per cent each to our revenues, with India contributing 60 per cent,” he said.

Besides expanding the base organically in the US and Europe, the company was planning to acquire one or two firms to tap the opportunities outside the country.

Asked if the company would go for pre-IPO funding raising, he said: “I don’t think so. I never raised external capital in building my ventures, including India World,” he said.

Published on January 15, 2022

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