Chennai Based Cloud Software Firm Ramco Raises About $52 Mn Through QIP

Chennai-based Cloud Software Company, Ramco raises approximately $52 Mn through Qualified Institutional Placements (QIP) to give direct competition to ERP and HCM firms. Some of the leading institutional investors who have invested in the company include HDFC Mutual Fund, Amansa Holdings, Goldman Sachs, Jo Hambro and Axis MF.

The company will invest the fresh funds in building the right workplace to attract the best talent to work on developing cool innovative products as well as to expand into global markets and in reducing debt and interest cost.

Commenting on the fund raising, Mr. P R Venketrama Raja, Vice Chairman and Managing Director, Ramco Systems, said, “Globally, Cloud companies are getting good valuation. This is the value that investors attach to IP-led businesses. India is slowly moving towards differentiating Product from Services led software businesses. We are happy to be leading this curve. The successful fund raising from institutional investors is a testament of the belief and trust they place on the company and the strong fundamentals on which our business is built.”

Founded in 1999, the motive of the company is to create and provide “Next Generation Enterprise Solutions” that enhance the competitive capabilities and value proposition of customers by leveraging new technologies and expanding global connectivity. The company which recently published its unaudited financial results for FY 2015, had announced net profit after tax of $2.09 Mn for the year on a consolidated basis.

With Enterprise Cloud market attempt to sell, Ramco has been investing in expanding and building capabilities to address global needs. Leading global and domestic institutional players have picked up stake in the company through this QIP.

The company believes that raising funds at current valuation levels would be in the long term interests of the Company and would allow the Company in reduction of the leverage ratio. Following as a result to QIP, Public shareholding of Ramco shares has increased from 30.9% to 42.9%.

Ramco with focus on Mobility, User Experience and Performance improvement through Agent-based technology (In-memory Computing), it has been aiming on attracting and retaining the brightest minds in the industry. In an IT-Services driven country, Ramco has been ‘Disrupting the Status Quo’ with its cloud based products.

Recently, ERP solutions startup, Icertis has also raised $6 Mn from US-based venture capital firm, Greycroft Partners along with Fidelity Growth Partners India.