Bangalore: The Indian arm of SAP has emerged as the fastest growing subsidiary of ERP software giant SAP. In the first quarter of 2008, SAP India has marked revenue growth of 43 percent in the small and medium business segment, the highest for a single region across SAP worldwide, reported The Economic Times (ET).

Moreover, the quarter has seen overall software license revenue ramp up by 67 percent. The local operation, with a employee base of 5,000-plus right now, expects to scale up to 7,000 very soon. "Businesses in India understand that IT is critical to operating efficiency and we help them to improve their bottom line," Ranjan Das, President and CEO, Indian subcontinent, SAP told ET. With 3,100 customers straddling SMB and enterprise segments, Das is dismissive of any slowdown effect on the Indian market.

SAP had committed an investment of $1 billion between 2006 and 2010 in the Indian subsidiary. However, going by the fast pace, the $1-billion cap would not act as a constraint for SAP India. Also SAP Ventures, the company's angel investment arm, plans to acquire up to 20 percent stake in six Indian companies over the next 9-12 months. The quantum of investment is pegged around $30 million. SAP Ventures has existed since 1997 and has invested in 75 firms across the U.S. and Europe.

SAP Ventures is eyeing investment opportunities in small and medium sized Indian companies with potential for growth and collaboration. SAP Ventures hopes to tie up three deals in the next couple of months followed by three more over the following six months.