HSBC invests $7.6 million in Indian software business

HSBC Private Equity Asia is backing Newgen’s fast growth of the last few years as it rolls out into fresh markets in the rest of the world.

HSBC Private Equity Asia has invested 300 million Indian Rupees ($7.6 million; €5.2 million) from an Asia-focused venture fund for a minority stake in Newgen Software Technologies, a software company based in New Delhi.

Newgen, which counts HSBC as a client, provides solutions for banking, financial services and insurance, business process outsourcing and telecommunications and government segments. The business is established in India, Middle East, Africa and Southeast Asia.

James Savage, investment director of HSBC Private Equity, said Newgen, which has a 40 percent market share in India is looking to expand to new markets in North America, Europe and the rest of Asia. Savage added that HSBC would be able to help the business expand across Asia.

Diwakar Nigam, chief executive officer of Newgen said: “Our company has been growing at the rate of 50 to 60 per cent in the products and solutions business over the last three years.“

Savage said Newgen is the fourth Indian investment from the venture fund in the past three years. The $120 million technology-focussed fund closed in 2006 and can deploy between $3 million to $15 million for each investment.