NetMagic Gets $20M for US Expansion
February 12th, 2008 By: Rich Miller
NetMagic Solutions, one of India’s leading managed IT services providers, said today that it has received $20 million in private equity financing, which it will use to expand its remote infrastructure management services in the United States. NetMagic also said that it has appointed Sandip Gupta, former president and CEO of IT automation software maker Ensim, as its President.
NetMagic has four data center facilities and 500 customers in India, and a data center presence in Silicon Valley. NetMagic says its expansion will target US firms that want to retain their infrastructure on-site but need help managing it. NetMagic offers services to monitor and manage IT equipment remotely from its facilities in both the US and India.
“One of the biggest concerns for US companies we’ve spoken to is staffing, especially the number of skilled people who are retiring,” said Gupta, who said NetMagic is already providing remote management services for several large international customers, including a global VPN provider and an American firm offering software as a service (SaaS).
The $20 million 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 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.”
While leading Ensim, Gupta developed long-term relationships with over 200 global service providers before the company was sold to SWsoft last year. Earlier in his career, Gupta held senior positions at Indus Consultancy Services and Tata Consultancy Services.
NetMagic has four carrier-neutral datacenters located in Mumbai, Bangalore, with a total footprint of about 100,000 square feet.