24/7 to go for funding in '04

Economic Times

Hyderabad: Fresh from securing $22 million financing, the outsourced contact center and BPO services provider, 24/7 Customer may go for a third round of funding by mid 2004 to support its expansion plans. Besides, the company is also looking at growth through acquisitions in the Indian market.

The company, which had raised $22 million in July this year by giving 20% of its enquiry to venture investor Sequoia Capital, will be utilizing the funds to expand the existing operations and acquire Indian companies with similar capabilities. The co promoters have already made initial investment of $10 million.

"The funds raised in the latest round will be used for expanding and acquiring new companies for the growth. We have short-listed 10 companies in the space that have sizeable revenue and good customer bases. We may go for another round of financing by mid or end of 2004 to support our plans," said Mr P V Kannan, cofounder and CEO of 24/7 Customer, without divulging the estimated amount to be raised in the third round.

The BPO services provider has opened a new 300-seats facility in Hyderabad with a $2 million investment and will be making a total investment of $6 million in expanding the facility to a total of 700 seats before December 2003.

The Andhra Pradesh Chief Minister, Mr N Chandrababu Naidu inaugurated the new facility here on Wednesday. The new center, which all generates sales for financial services offerings in future. "Notwithstanding the presence of large captive centers of MNCs in Hyderabad, it has been the endeavor of the state government to attract a large number of third-party BPO players to chart the future of the industry growth, Mr Naidu said.

Meanwhile, the company is looking to expand the Hyderabad facility by another 1,00 seats to facilitate business-processing activity for a UK-based insurance firm. 24/7 Customer's subsidiary company, Cosbi, works for the insurance account with a dedicated 250-seat facility in Bangalore and we are now looking to expand Hyderabad facility to meet the requirements of the UK client," Mr Kannan said.