Fulcrum Venture India, a highly successful SME investor started in 2000 by Krishna Ramanathan as a proprietary fund, today announced an investment of INR 8 crores in Congruent Solutions Pvt Ltd, a specialist service provider in the pension administration industry providing a host of retirement administration and technology development services to various companies in the US, UK and Singapore including Fortune 500 companies. As part of the deal structure Fulcrum Venture India will hold a 20% stake on a post money valuation of INR 40 crores. As an integral part of this deal, Fulcrum will have board representation and board advisor roles. The company will use the proceeds to expand its thriving services business and commence commercialisation of COREDC, its proprietary state-of-the-art Record Keeping System (“RKS”).
Commenting on the occasion, Krishna Ramanathan, Founder-Partner, Fulcrum Venture India said, “Fulcrum along with the management, have outlined an aggressive action plan to be implemented over quarter 3 & 4 of FY13 with plans geared towards Improved billing efficiency and Enhancing net sales. As part of our hands on strategy we have been in regular meetings with the Congruent team during the deal completion to kick start the action plan and have already seen results with Net sales increasing by 31%: a trend we expect to continue going forward. Congruent Solutions through its clients in technology services has developed domain expertise in the area of US pension Industry and is looking to specialize in this segment going forward. They realized that the Record keeping system (RKS) is at the heart of the pension providers in the US and the entire industry was using a legacy main frame solution, which was very cumbersome and expensive to maintain.”
Congruent Solutions- (a SEI CMMi level 5 compliant and ISO 9001:2008 certified company incorporated in 1986 with offices in the US, UK and Singapore)- has achieved existing revenue of 3 Million in India making it a profitable business. It is continuously upgrading products to fulfil customer requirements and has been well received by key market players. The company is poised to boost even higher profits going forward.
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