ISGN secures $25 Mn funding

CHENNAI, INDIA: ISGN Technologies Ltd, provider of platform based KPO services to the US mortgage industry, today announced that it has received $ 25 Million in funding from leading venture capital firms New Enterprise Associates (NEA) and NEA-IndoUS Ventures (NEA-IUV).

This global investment would further strengthen ISGN's capital base by adding to the investments of its promoters, the K.K. Birla group. ISGN will leverage the additional funding in building its global delivery infrastructure, expand sales and marketing initiatives.

As part of the investment, Menlo Park, Calif.-based NEA and NEA-IUV will, together receive three appointments to the ISGN board.

The $25 million investment follows a series of recently announced strategic acquisitions by ISGN in the U.S. Mortgage solutions space.

In March 2007, ISGN acquired the mortgage software division of Fair Isaac Corporation, a US based provider of predictive technology to the financial services industry. More recently, the company added Dynatek, a U.S.-based provider of mortgage automation software for retail and wholesale lenders to its portfolio.

"Over the next decade, the Indian IT services industry will increasingly move up the value chain by providing value added KPO services to the world. This will entail the use of new technology platforms to improve efficiencies and scale. We are excited to be an investor in ISGN for its leadership in demonstrating such value through its singular focus in the Mortgage financing sector." said Vinod Dham, Executive Managing Director of NEA-IndoUS Ventures and newly appointed ISGN board member.

ISGN is addressing the mortgage-lending space by providing technology solutions, advisory services and KPO to lenders that originate and refinance the approximately $2.6 trillion market in the United States each year. ISGN holds an 18 per cent market share and originates around $500 billion worth of loans through its various platforms in the residential and construction lending space. It also connects, by way of the BridgeLink vendor network and Plug in partner network, 900 third party vendor services, said company statement.