Personal Offshoring has created new investment opportunities in India with incredible growth potential
New York, NY (PRWEB) July 24, 2008
Personal Offshoring, which is driving the next wave of India's outsourcing success story, got a huge boost today when iYogi - a remote technical support provider from India - raised $9.5 million in Series B financing from SAP Ventures, a division of SAP AG, Canaan Partners and SVB India Capital Partners, a venture fund affiliate of Silicon Valley Bank.
iYogi (http://www.iyogi.net) delivers technical support services directly to consumers and small businesses and is the first, global, technical support brand based out of India. The company offers its customers an unlimited, annual service subscription for $119.99 per desktop that includes support for a wide range of technologies, including PC hardware Microsoft Windows operating system operating systems, software applications, peripherals and multifunctional devices.
"Personal Offshoring has created new investment opportunities in India with incredible growth potential," said Doug Higgins, partner at SAP Ventures. "It is very exciting to see companies like iYogi challenging the traditional enterprise-focused offshore-service delivery model by creating a consumer-focused, direct-to-customer personal offshore model. iYogi is one of the fastest-growing companies in this market segment, and we look forward to working with them to create India's next success story."
"Our focus on the customer experience has helped us achieve a 93 percent satisfaction rate across more than 50,000 customers," said Uday Challu, CEO of iYogi. "We are delighted to have the support of three terrific investors as we increase our market share and continue to provide the best technical support experience possible for our customers."
iYogi will use the funds to fuel its expansion into 12 new regions, including the United States, the United Kingdom and Canada, and to increase its delivery of new services including PC recovery, anti-virus/spyware, data back-up and PC optimization.
"As consumer technologies grow in sophistication, consumers will be seeking the kind of home IT support services - including remote services offered by companies such as iYogi - to help them solve their most complex problems," said Kurt Scherf, vice president and principal analyst, Parks Associates. "In primary research, we found more than one-third of consumers are willing to pay for competent and professional remote support services, and 60 percent express a strong interest in software solutions - what we refer to as 'PC Dashboards' - that automate many basic PC performance enhancement and troubleshooting features, solving many PC-related problems before they even are noticed by end-users."
iYogi had previously raised $3.1 million in Series A financing from Canaan Partners and SVB India Capital Partners in April of last year. "iYogi is one of the most promising investments for Canaan Partners," said Alok Mittal, managing director of India at Canaan Partners. "Third-party, vendor-independent technical support is an exciting new service category, witnessing explosive growth. Customers are looking beyond the traditional vendor-provided support to remote channels for better problem resolution, faster service, and greater overall satisfaction. iYogi has created an incredible value proposition and price offering for its customers that is hard to beat."
"Several next generation outsourcing companies from India are delivering a range of personal offshoring services for individuals and small businesses in the U.S. including online tutoring, tax preparation, remote executive assistance and research services," said Suresh Shanmugham, managing director of SVB India Capital Partners, a venture fund affiliate of Silicon Valley Bank. "iYogi has leveraged the technical skills available in India along with process expertise to scale as a global technical support provider for millions faced with increasingly complex technology."
About SAP Ventures
SAP Ventures invests in innovative and disruptive software and services companies globally. We pursue opportunities across all stages for outstanding financial return. Our goal is to bring substantial benefit to all parties by facilitating interaction between portfolio companies and SAP and its ecosystem of customers and partners. SAP Ventures has a successful track record of building industry-leading companies by partnering with outstanding entrepreneurs and top-tier venture capital firms since 1996. For more information, visit http://www.sapventures.com.
About Canaan Partners
Canaan Partners is a global venture capital firm specializing in early-stage information technology and life sciences companies. Founded in 1987, Canaan Partners has $2.4 billion capital under management and has invested in more than 240 companies, completed 63 mergers and acquisitions, and brought over 50 companies public. The firm catalyzes the development of innovative mobile, Internet, CleanTech, networking, semiconductor, enterprise software and services, biotechnology and medical technologies to build next-generation market leaders. Canaan was an early investor in Acme Packet (APKT), Aperto Networks, BharatMatrimony.com, Blurb, DoubleClick (DCLK), ID Analytics, Match.com and SuccessFactors, along with dozens of other market-leading companies. Canaan is headquartered in Menlo Park, California and also has offices in Connecticut, India and Israel. For more information visit, http://www.canaan.com.
SVB India Capital Partners Fund and Silicon Valley Bank
SVB India Capital Partners Fund is a $54 million equity fund that is focused on Indian companies and co-invests across industries and stages with top-tier venture capital firms. Silicon Valley Bank is the premier commercial bank for emerging, growth and mature companies in the technology, life science, private equity and premium wine industries. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 27 U.S. offices and five international operations. Silicon Valley Bank is a member of global financial services firm SVB Financial Group, with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at http://www.svb.com.
iYogi is the first direct-to-consumer and small business technical support service from India. Providing an annual unlimited subscription to technical support for $119.99 per year, iYogi now boasts more than 50,000 customers. The company employs 450 professionals servicing customers in the U.S., U.K. and Canada, and is expanding to 12 new geographies across the globe. iYogi's resolution rate of 87 percent and customer satisfaction rate of 93 percent are amongst the highest published benchmarks in the industry. For further information, please visit http://www.iyogi.net.