Round V: Baring Equity To Pump $4 M Into mSource

New Delhi: | Updated: Nov 29 2002, 05:30am hrs
Baring Private Equity Partners, a venture capital firm is investing $4 million as part of its round E in the IT-enabled services (ITES) arm of Mphasis, mSource. Baring intends to complete this round by January, 2003. This is our E (fifth) round in the company which should be completed by early next year, Baring Private Equity Partners managing partner Rahul Bhasin told eFE. It has already invested over $2 million spread over four earlier rounds.

Baring holds 22 per cent stake in mSource, 74 per cent is held by the parent company while the remaining is held by the management. According to mSource officials, the equity holding in mSource will remain constant as the other shareholders (besides Baring) are also expected to increase their investments in equal proportion to Baring.

We are growing at a fast pace and require funds to expand over the near future. Our investors are committed to our company and have been consistently investing in us, mSource chief financial officer (CFO) Ravi Ramu said. He, however, did not disclose the share capital of the company or the investments planned by the other shareholders (Mphasis and the management) but confirmed the investments by Baring.

mSource has an ITES facility each in Pune and Bangalore with a total of 1,000 seats. To extend its services to non-English languages, it is planning to set up its third facility in Mexico. We plan to hire Spanish-speaking agents for this centre. We will start this centre with 50 to 100 seats, he said.