South Africa-based Cura Risk Management Software will be investing $5 million (approximately Rs 24.5 crore) for setting up a facility in Hyderabad that would take up research and development (R&D), business development and offer back-end support, according to its chief executive officer Avi Eyal.
The company, which provides governance, risk and compliance (GRC) solutions, in June this year was acquired by city-based business solutions provider SoftPro Systems Limited for a structured consideration of $19 million (Rs 93.1 crore) in an all-cash deal, which includes earnouts over the next three years.
“The move is part of our strategy to bring Cura’s GRC software to India. We will be hiring 90 professional for the Hyderabad centre, which will be funded through internal resources. The centre will be ready in a month’s time,” G Bala Reddy, chairman and managing director of SoftPro Systems, told Business Standard.
Cura’s GRC platform consists of five key modules and the company is in the process of rolling it out into the Indian market through its Hyderabad office and through a partner ecosystem in the next 30 days. The eight-year-old 106-strong company’s GRC solutions are being used by over 250 customers.
“Our focus is on banking, financial services and insurance (BFSI), power utilities, oil and gas, telecom and IT sectors. We have already started setting in motion initiatives like giving proofs-of-concept to companies as well as regulators,” Eyal said, adding that its products would be offered in India in an installed environment as well as through the software-as-a-service model.
“Globally, GRC as a market (software, consulting and related services) is pegged at $30 billion, which is projected to reach $50 billion over the next five years, while India is still a young market. The recent global depression and revelations of corporate missteps have heightened the need for oversight of GRC functions. With more compliances being enforced by the regulators, we believe all the listed entities would now have an obligation to move in this (GRC) direction. We are taking this as an opportunity,” he said.
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According to Bala Reddy, Cura Risk Management’s revenue on a standalone basis is expected to touch $12 million (Rs 58.8 crore) this financial year, as against $8 million (Rs 39.2 crore) last year, on the back of the headway it is making into newer geographies.
The scrip of SoftPro Systems ended the trade at Rs 210.50 on the BSE, up 4.99 per cent as against the previous close of Rs 200.50.