Virinchi eyes buys in US

Virinchi Technologies is scouting for acquisition targets in the financial services solutions domain in the US, Chief Executive Officer Anil Kumar Pinnapala said today.

The e-business solutions provider recently got shareholders' approval to raise $2 million (about Rs 8 crore) through foreign currency convertible bonds (FCCBs), and these funds will be used for acquisitions, product development, Pinnapala told.

"We are identifying companies in the US, which may add strength to our retail micro lending product line," he said.

During the year ended March, the company had acquired K-Soft Systems, a US based financial service solutions provider.

Currently, the US market contributes 75 per cent to Virinchi's total revenues, and the company is eyeing growth opportunities in Europe and West Asia, said Pinnapala.

It has recently signed a multi-year contract with US-based retail micro lending company, which is likely to fetch up to $2 million guaranteed annual revenues, the official said.

"We've developed the Application Service Provisioning model that ensures a steady flow of revenues to the company," said Pinnapala.

The company sees its revenues for the current financial year to March at Rs 56 crore compared with Rs 34.4 crore a year ago, and net profit at Rs 9 crore against Rs 8.8 crore in the year ago period, he said.

Virinchi recently opened its third development facility in Secunderabad, which can accommodate 175 associates.

The company's seating capacity will now rise to 450.

This facility would focus on new product development and customer support operations for its micro-lending suite of financial services products, said Pinnapala.

Shares of Virinchi Technologies were at Rs 32.20 on the Bombay Stock Exchange, down 0.85 per cent from close on Monday.