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iYogi enters Spain, looks to raise $55 million through PE funds

Mar 24th, 2014
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Ever since its inception in 2007, iYogi has crossed several barriers, broken their own records, and set newer and steeper targets for them to achieve. With the view to expand at a global level and to cater to the tech queries of more and more customers across diverse geographical backgrounds, iYogi is looking to add many more countries to its current list of 10. As a part of the expansion plans, the company will raise $55 million from PE funds by selling 10 percent of its stakes. This was shared by a senior executive in iYogi who requested for anonymity. The source further added that iYogi was already in talks with several American and European investors through which they were aiming to raise about $20 million by March end.

As per statistics, iYogi currently has yearly revenue of $100 million and with a headcount of 4500 tech professionals working round the clock. However, with the expansion, these figures will increase several notches with the estimated revenue value at $400 million and staff strength of over 7000 professionals.            

In the seven years of its being, iYogi has raised about $50 million and the new funding will reduce the owner’s stake and also of those of the senior management executives by up to 30 percent. The remaining portion will be supported by private equity funds such as Sequoia Capital, SAP Ventures Canaan Partners, Samaa Capital, and Draper Fisher Jurvetson.

Currently, iYogi is looking to enter the markets of Europe, Latin America, and Asia, and as the first few steps have already managed to join hands with telecom giant Telefonica in Spain. The new joint venture branded Guru will empower Telefonica customers to take care of their digital homes by enjoying a ‘one-source tech support and service provider’ for all their digital assets.

Uday Challu, co founder and iYogi CEO has affirmed that, "Led by Madison India Capital and existing investors, PE firms have already committed $35 million to the company". This surely hints that in the coming months, one can expect iYogi to not only enter newer regions but also firmly establish them there.