Managed IT Services Provider NetMagic Secures $20 Million Investment
americanventuremagazine.com, February 12, 2008

Sunnyvale, CA--(BUSINESS WIRE)--NetMagic, India's leading managed IT services provider, today announced that it has acquired $20 million in private equity financing. This round of funding was led by the Indian proprietary venture and growth capital arm of Fidelity International Limited (FIL) and India's leading venture capital firm, Nexus India Capital. The company will use proceeds of the financing to accelerate business growth and expand its footprint domestically and internationally. Nexus India Capital is a prior investor in NetMagic. (See today's related release entitled "NetMagic Extends Remote Data Center Management Services to North America").

Over the years NetMagic has established itself as a leader in the managed hosting services space for a diverse range of industries including financial services, telecom, online commerce, online media, gaming and manufacturing. NetMagic plans to use the new round of funding to expand its service portfolio, to introduce new data center locations in India and to establish its presence in North America and other geographies.

"The latest round of funding demonstrates our investors' confidence in our management team, our strategy and roadmap," said Sharad Sanghi, chief executive officer and managing director, NetMagic Solutions. "Over the last few years, we have built a blue chip client base in the financial, telecom, media and Internet sectors. This is the right time to invest more aggressively and scale our business to the next level and roll out new locations and services."

"Over the past few years, NetMagic has achieved growth rates of over 70 percent and significant market share in the fast-growing, highly competitive Indian Managed IT Services market," said Mr. Raj Dugar, senior managing director at FIL's Indian proprietary venture and growth capital arm. "With a world-class management team, best-in-class systems and processes and solid customer base, we are confident of NetMagic's continued success and look forward to being associated with the company as it achieves its ambitious growth plans."

"NetMagic's leadership position, technology innovation, and high quality delivery gave us the confidence to invest again in this round of funding," said Naren Gupta, managing director, Nexus India Capital. "This investment reaffirms our commitment to invest in high growth companies in India. NetMagic will emerge as a global provider of choice for mission critical applications in the outsourced data center and remote infrastructure management space."

NetMagic's client list of hosting customers includes domestic and global market leaders in banking and financial services, media and entertainment; IT enabled Services (ITeS), manufacturing, travel and tourism, education, telecom, and government institutions.

This article in its complete form appeared in the February 12, 2008 issue of americanventuremagazine.com. It also appeared on the periodical's online portal on the following URL. Click the following link to read the archived article in its full form as it was published.