The funds will be used for the company’s international foray and to double its workforce in the next 12 months. Its existing team is 80-person strong. Crossdomain plans to have a team of over 300 professionals by 2004.
The company is planning to raise $5 million in its second round of funding, some time during the current year.
“Before we go in for a second round of funding, we are looking at investing close to $1.25 million in expanding our operations,” Crossdomain Solutions executive director LS Ram said.
At present, the company has 34 clients including GE, Hewlett Packard, Cisco, Aditi Technologies and Talisma in the domestic market. It is now looking at expanding its operations to the international market as well.
The company intends to enter the US and the UK. Towards this end it is in discussions to form strategic alliances with companies in the same space.
“We will enter the US and the UK through strategic partnerships, even though we are not sure whether this will involve equity offloading or not,” Mr Ram said.
The company has already offloaded 26 per cent equity to ICICI-Ventures and close to 20 per cent to its angel investors. Ten per cent of the equity has been offloaded in the form of employee stock options (ESOPs) and the remaining is with the directors and promoters.
At present, 95 per cent of the company’s revenues come from HR services like payroll, ESOPs, factory time management, etc. Accounting services make up the rest.
Mr Ram however, sees this mix changing in a year’s time, with a shift towards accounting services and financial institution back-office services.
“HR services are likely to account for only 50 to 60 per cent of our revenues in the next year. The remainder will be contributed by accounting and FI back-office services,” he said.