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HSBC Private Equity Asia takes stake in Indian software firm

HSBC Private Equity Asia has invested INR300m in a minority stake in Newgen Software Technologies, a New Delhi-based provider of enterprise solutions for business process management and co

HSBC Private Equity Asia has invested INR300m in a minority stake in Newgen Software Technologies, a New Delhi-based provider of enterprise solutions for business process management and content management in banking, financial services and insurance, business process outsourcing, and the telecoms and government segments.

The funds raised will be used to expand Newgen’s international sales and marketing efforts. The company already has a substantial market share in emerging economies including India, the Middle East, Africa, and south-east Asia, and plans to tap new markets in North America, Latin America, western and central Europe, central Asia and East Asia.
 
‘Our company has been growing at the rate of 50 to 60 per cent in products and solutions business over the last three years, and we have been working with more than 30 large customers,’ says Newgen chief executive Diwakar Nigam. ‘With HSBC on board, we look forward to replicating our success in new markets and maximising shareholder value through our highly scalable product-based business model.’
 
James Savage, investment director of HSBC Private Equity Asia, says: ‘Newgen is one of a few sizeable software product companies in India that has established a blue-chip client base. Newgen is able to deliver outstanding value to its customers based on the intellectual property it has developed.

‘The worldwide market for business process management and content management solutions is expected to experience strong growth over the medium term. We believe Newgen is well positioned to benefit from this opportunity. HSBC Private Equity Asia will assist Newgen in its business development through our extensive network and reach in overseas markets.’
 
Savage adds: ‘India represents a core market for private equity investments for our funds. We will continue to look for other attractive investment opportunities here.’

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