Aujas Networks, the IDG Venture-backed pureplay digital security services provider, is exploring the possibilities of raising a second round of funding to push forward its growth plans.
Aujas co-founder and chief executive officer M Srinivasa Rao said that the company is exploring the private equity option to raise up to $2.5 million to expand its sales and marketing teams in its new markets.
“We have informal talks with some private equity players, though our primary focus has been on IDG Ventures,” Rao said.
The Bangalore-based company received startup funding of about $3 million from IDG Ventures in 2008, and has since build up a strong customer base in digital security services such as application security, IT risk management, identity management, vulnerability management and converged security services.
Rao said that the company would discuss stake dilution with its VC once a valuation for the company is arrived at post a due diligence process. “Equity via stake dilution is the only option right now. We are not currently looking at listing on the stock markets. Raising debt is also not on the cards for the time being.”
“We have been working on building a good base in India, and since last year, have been establishing our overseas presence. This year, we are looking at expanding more outside India. We have been working through partners in the West Asia after we set up an entity in Dubai last year.
In Germany too, we have been functioning through a partner. We started our US operations in January and our UK operations in March this year,” Rao said.
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The company has carried out a few projects in identity and access management services for IBM and is currently working on some large deployments for marquee customers in India, he added.
IDG Ventures currently holds about 56 per cent of the shareholdings in Aujas, with promoters Srinivasa Rao, Sameer Shelke and Manjula Sridhar holding 32 per cent. Employee stock options constitute about 10 per cent.