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Netmagic plans $25 Mn expansion
By Saheer Karimbayil
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Bangalore: Even as some major players in Indian IT are at their level best to reduce operational cost, Netmagic Solution, India's carrier neutral managed IT service provider, is planning to embark on a $25 million global expansion drive. The firm has received a combined investment of $20 million from two funds - Fidelity International (FIL) and Nexus India Capital. The remaining $5 million will be raised internally.
"We need not worry about the economic slow down in U.S.; it is right time in India for investment. And we are increasingly focusing on Indian expansion by establishing more data centers in the cities like Delhi, Chennai and Bombay," said Sharad Sanghi,CEO and MD, Netmagic.
Asked about the company's global expansion strategy, Sanghi said that they are looking to begin from the U.S., where they have a presence in Sunnyvale.
Along with building more data centers, Netmagic will use the recieved investments to fund its acquisition plans as well. The company is eying other rivals that focuses on managed hosting. Netmagic claims that it holds the 12 percent share of the total market of managed hosting. Moreover, around one million dollar is allocated for branding.
With a presence in the areas like financial services, telecom, online media and manufacturing verticals, Netmagic has a client base of 500 and a headcount of 250.
FIL and Nexus India Capital refused to disclose the proportion of the investment they are putting together. However, an official from FIL said that it was the first investment by the firm in India.