Battery Ventures to buy 15% in Tejas Networks

To invest $12m in Bangalore firm.

The US-based Battery Ventures, the venture capital firm that manages over $1.6 billion in capital and technology companies, is about to debut in India by picking up a 15 per cent stake in the Bangalore-based Tejas Networks, which has a presence in the optical networks business.

Sources close to the development said: "Battery Ventures will be leading a $15 million funding in Tejas. The firm will invest around $8-12 million in the company and will be joined by the existing investors in Tejas who will invest the rest."

The firm's investors are Fortune 1000 institutional investors such as General Motors, Liberty Mutual and Bank of America.

Battery Ventures Director of Marketing Kate Castle in an e-mailed response to questions sent by Business Standard said: "Battery is currently evaluating a number of investment opportunities in India.

At this point it will be preliminary to discuss any of these investment opportunities, as we have not closed a deal with any of the companies yet.

Tejas Network executives declined to comment. The investment will be the third round of funding in Tejas Networks. The company was founded in May 2000 by Sanjay Nayak, Kumar N Sivarajan and Arnob Roy.

Sycamore is a publicly held corporation focused on developing transport, switching and management products. Other investors include, ASG Omni LLC, a consulting and financial advisory firm that promotes strategic investment initiatives in India and the Asia-Pacific region for US-based companies.

The company raised its second round of funding in early 2002 and added IL&FS Investment Managers Limited (IIML), the private equity arm of Infrastructure Leasing & Financial Services Limited (IL&FS), and Intel Capital, to its list of investors.

Battery Ventures invests in technology companies at all stages of growth and has put money into over 160 companies in communications, software, infrastructure and media and content worldwide.