Virtusa raises $20M in series D
By siliconindia staff writer   |   Thursday, 03 June 2004, 19:30 IST
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Virtusa Corp., a provider of software development and related IT services, said it has raised $20 million in a Series D round of financing in what the company hopes will be its last round of private financing. New investor Focus Ventures led the round. Returning investors Sigma Partners, Charles River Ventures and Globespan Capital Partners also participated. The funds will be used for global expansion, sales and marketing. "We anticipate it will be our last round of private financing," said Tom Holler, senior vice president and chief financial officer of Virtusa. He also said that it took about 90 days to raise the round. Holler declined to comment on whether Virtusa is planning an initial public offering. Virtusa has raised $60 million to date. In November 2002, the company raised a $12 million Series C round of funding from Sigma Partners, Charles River Ventures and Globespan Capital Partners. The company reached profitability in its 2004 fiscal year, which ended March 31. The Westborough, Mass.-based company was founded in 1996 by Kris Canekeratne, chairman and chief executive; and Tushara Canekeratne, executive vice president of technical operations. It has 1,900 employees, including employees in offices in India and Sri Lanka. Virtusa, which changed its name in April 2002 from eRUNWAY Inc., creates and consolidates software assets into organization specific platforms that are leveraged across an enterprise. The company's customers include Vignette Corp., Circuit City Stores Inc., McDonald's Corp., Bank One Corp., Xerox Corp. and Siemens Corp. Holler said that there won't be any additions to the board following the round of financing, which closed in February. Besides Canekeratne, the board of Virtusa includes Izhar Armony, partner with Charles River Ventures; Robert E. Davoli, managing director at Sigma Partners; Andy Goldfarb, managing director at Jafco Ventures; and Ron Maheu, an independent director

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