Monday, 24 March 2014

iYogi Conquers Newer Regions; Shares its Financial Plans for the Next Year

In just the six years that it has been in the industry, iYogi has managed to carve a niche for itself by successfully resolving millions of tech-related queries of their customers across the 10 countries where they have their footprints in. With a view to go on to the next level, iYogi is looking forward to expanding their horizon and capture newer regions in the coming year. They are also aiming at increasing the revenue, which currently stands at $100 million, every two years for the next five years. This is in addition to their planning to increase the headcount from 4500 to 7000 proficient tech professionals.

As per the latest updates, iYogi will raise $55 million from equity funds (approx. 340 Crore INR), and to raise this amount, the company will sell its 10 percent stake. This will also reduce the stake that the key management executives had by up to 30 percent. The remaining portion of the funds will be taken care of by PE funds such as SAP Ventures, Canaan Partners, Sequoia Capital, Draper Fisher Jurvetson, and Samaa Capital. iYogi is also in talks with several American and European investors to raise an extra fund of $20 million before the end of March 2014.

Uday Challu, co-founder and CEO of iYogi has shared that, “Led by Madison India Capital and existing investors, PE firms have already committed $35 million to the company”. This statement clearly affirms the expansion plans of the company and that they have already taken the first steps towards realizing this goal.

This planning is in sync with the company’s idea of venturing into newer geographical regions such as Europe, Latin America, and also Asia. So far, the company has already entered into partnership with Telephonica, a leading telecommunication brand in Spain, thereby flagging off the iYogi operations in the country. In addition to this, iYogi is in talks with several telecom companies across Australia, West Asia, and India to start off similar services in their regions of operation.

Going by the history of the company’s performance, it is just a matter of sometime before one could say that iYogi has indeed entered the prestigious $1 billion-revenue club.