Speaking to reporters here on Tuesday, Linc Software managing director Chandra Kumar said the funds would be used primarily for promoting and stepping up businesses in US and UK, besides developing its infrastructure facilities in India. "We will use a part of the fund to acquire a subsidiary in the US," he said.

With ICF joining the business, Linc has expanded the size of its board from three to five by inducting ICF managing partner Norman Prouty and a Bangalore-based IT expert Praveen Gandhi.

Kumar said Linc would continue to have its focus on the areas of manufacturing and distribution, banking and insurance. The company recently identified sectors like healthcare and telecom, he added.

Linc Software technical director Rajan Narayanan said the company would like to widen its expertise from $S/400 and ERP services to Notes and Domino, Java and XML.

ICF managing partner Vijay Angadi said the company would invest Rs 9.5 crore in India in the first lot. "We have created a fund to invest in knowledge-based companies with primary focus on IT." Currently, ICF is in the process of identifying more IT companies in India.

Speaking on the occasion, Prouty said ICF had plans to invest Rs 80 crore in one year in the southern and western parts of India. "We will be bringing between Rs 1-12 crore to the table in any of the companies that we want to invest in," he added.

According to Kumar, Linc Software is targeting Rs 130 crore business to achieve Rs 30 crore PAT in five years. The company would concentrate on the US market and 40 per cent of the total revenue would be from e-business, he said.