HSBC Private Equity Asia invests in Newgen Software

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Bangalore: Newgen Software Technologies, a New Delhi based product company today announced a significant investment of $7.5 million (300 million) for a minority stake in the company, by a wholly owned subsidiary of the HSBC Asian Ventures Fund advised by HSBC Private Equity Technology. The funds raised will be used to facilitate Newgen's expansion of sales and marketing activities in new markets across the globe.

The company has a substantial market share in emerging economies, such as India, the Middle East, Africa, and South East Asia. Newgen is now looking at tapping new markets in North America, Latin America, Western & Central Europe, Central Asia and the Far East.

Speaking on the investment by the HSBC fund, "Our Company has been growing at the rate of 50-60 per cent in products and solutions business over the last three years. We have been working with more than 30 large BFSI customers on a continual basis. With HSBC on board, we look forward to replicating our success in new markets and maximizing shareholder value through our highly scalable product-based business model," said Diwakar Nigam, MD and CEO of Newgen.

"Newgen is one of a few sizeable software product companies in India, which has established a significant 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 that 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," said James Savage, Investment Director of HSBC Private Equity Asia.

"India represents a core market for private equity investments for our funds. We will continue to look for other attractive investment opportunities here," he added.

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