Connectiva Systems Secures $17M in Financing
New York, September 23, 2008:
Connectiva Systems Inc., a leading provider of revenue and risk management solutions for the telecommunications industry, today announced the completion of a $17 million round of investment led by NEA - IndoUS Ventures; IFC, a member of the World Bank Group; and SAP Ventures, a division of SAP AG. Returning investor Ovation Capital also participated in the round.
"Revenue and risk management is a growing need of communication service providers worldwide," said Avi Basu, CEO of Connectiva Systems. "Telecom companies lose billions of dollars annually due to revenue leakage and other risk factors, and Connectiva plays a central role in helping recover this revenue. Our ability to dramatically boost our customers' financial performance helped us secure financing from some of the smartest investors globally. We are delighted to welcome these new institutional investors, as they each bring unique advantages that will help us extend our global leadership and reach."
Connectiv's position as a stellar example of India's evolving technology industry is in part what attracted investors to the company. Vinod Dham, managing director of NEA - IndoUS Ventures, a top-tier venture capital firm based in Silicon Valley and India, stated: "Connectiva is a strong fit for our portfolio, with proven and differentiated technology, rapidly growing revenue, and a unique business model that leverages the strengths of India. The company has generated significant customer and partner traction in a fast-growing market and the company has the right team in place. It has brought technology talent on board from around the world, as well as from premier institutions like the Indian Statistical Institute (ISI) and the Indian Institute of Technology (IIT)."
Mr. Dham, popularly acknowledged as the "Father of the Pentium" processor, was named one of the top 25 executives in the computer industry in America and one of the top 100 most influential Asian Americans of the decade.
Connectiva's positioning resonated with IFC, a leading investor in telecom companies across emerging markets. "Connectiva has had great success supporting international telecom operators with advanced business models for revenue management products. IFC is committed to support Connectiva to fully realize its growth potential," said Mohsen A. Khalil, IFC director for Global Information and Communication Technologies. "IFC is pleased to be associated with a market-leading software company with research, development and service operations based in Kolkata, one of the emerging IT centers in India. We hope that Connectiva's success will spur more entrepreneurial endeavors in that region, leading to further development of the local IT industry and creation of additional highly skilled jobs."
Headquartered in New York, Connectiva has offices globally and employs over 300 people at its Global Innovation Center in Kolkata, India. "Connectiva does far more than mere outsourcing in India - we develop the very core of our intellectual property there," said Mr Basu. "The Indian IT industry is growing up, and we are proud to be an example of how it can be done." According to Mr. Basu, the company's revenues have doubled each year for the past several years, and its Kolkata-based work force has grown from 50 people three years ago.
The funding round was joined by strategic investor SAP Ventures, the investment arm of enterprise software company SAP AG. "SAP Ventures typically evaluates multiple companies focused on a particular market segment on a global basis before deciding to invest in a particular company," said Jai Das, partner at SAP Ventures. "Our decision to invest in Connectiva instead of other companies we evaluated was based on its superior technology and customer traction. We are looking forward to working closely with Connectiva's team to help it become a global powerhouse."
Returning investor Ovation Capital, a New York-based investment fund, also joined the round. "As transnational firm, Connectiva has been able to tap into emerging market telecoms, where subscriber bases are vast and fast growing, as well as into mature telecom markets," said Greg Frank, managing partner of Ovation Capital. "It has repeatedly shown an ability to adapt to an evolving, competitive marketplace and focus where it matters. Connectiva's detailed attention to its customers' needs, its tested and superior technology, and its people's energy and innovativeness have been validated by this equity round. We anticipate Connectiva solidifying its lead in the evolving revenue and risk management markets."
Connectiva Systems' projects have been recognized by numerous industry awards, including the prestigious World Billing Award for "Best Revenue Assurance Project". Connectiva has implemented the largest revenue assurance projects worldwide. Its system processes over four billion call data records per day - more any other company in the industry.
Vinod Dham, managing director of NEA-IndoUS Ventures and Pravan Malhotra, senior investment officer with IFC's Global Information and Communications Department, will join Connectiva's board of directors with immediate effect.