The funds thus raised would be utilised for the telecom software company's operations in India and the US. Recently, Wisor Telecom Corporation, a start-up funded by a couple of venture capitalists in America, kicked off its Indian operations by opening its wholly-owned subsidiary.

The company is understood to have approached Arthur Anderson to finalise the domestic VC funds. ``We may accept funds from either one or a couple of such venture capital fund managers based in India,'' Wisor Telecom president and CEO Vaikunth N Gupta told The Financial Express.

The company is also looking at an initial public offering (IPO) on the Nasdaq stock exchange during the fiscal 2001. ``The funds from the VCs will be in the form of loan and we will have an agreement to convert the loan into equity at the time of IPO,'' Gupta said.

The main idea behind the planned alliance with ICICI Venture Fund was to attract business from companies like Satyam and Microland. Both these companies have a long-term relationship with ICICI Venture. However, the talks with ICICI Venture is at a preliminary stage.

The US company is aiming to invest about $25 million, out of which an amount of $10 million will be invested over the next one year. ``We have already injected $15 million with the assistance of venture capitalists in the US,'' Wisor Telecom India general manager MN Nayak said.