CHENNAI: KG Information Systems (KGISL), the Big B in the Medical
Transcription industry in Tamil Nadu, is looking for Venture Capitalist funding
for diversifying and expanding its business. Coimbatore-based KGISL is looking
at around $6 million to expand its medical transcription business and design
engineering services in the high end CAD segment catering to the automotive and
aerospace sector. KGISL is also thinking of diversifying into medical billing
and medical claims processing. It has decided to go for an IPO in six months
time.
"We have been discussing with three-to-four venture capitalists in
Mumbai and Bangalore. The deals should come through in a couple of months. It is
good to have funding from multiple VCs so that risks are spread out. And it is
easier to bring in funds in the latter stage," said, KGISL managing
director Ashok Bakhtavathsalam.
"We are looking at investments beyond the seed stage in medical
transcription. We have proved that the concept works and now needs funding to
move faster on the growth path in the medical transcription industry. In the
design engineering services, we want to increase our staff strength from 25 to
100 and in the software services from 300 to 1200. We would like to be a
multi-product company in a year's time," he added.
KGISL had contributed Rs 15 crore out of the net Rs 21 crore revenue the
industry clocked last fiscal in Tamil Nadu. It has grown from a buyer-supplier
partner of Heartland Information Services with 27 people in 1998 to become the
joint venture partner of Heartland Information Services, and has about 340
systems and 1200 transcriptionists now.