Rising demand for third party technical support services and Indian outsourcing helped iYogi Inc. land $9.5 million in a Series B venture funding to expand product features and sales channels for its subscription-based services.
The two-year-old New Delhi company said Thursday it added SAP Ventures of Palo Alto, Calif., as lead investor in the round, joining previous investors Canaan Partners of Menlo Park, Calif., and Santa Clara, Calif.-based Silicon Valley Bank's SVB India Capital Partners affiliate. The deal brings total institutional investment in iYogi to $12.6 million, and is expected to take the company to positive cash flow in 2009.
Vishal Dhar, iYogi's president of marketing, said the company has about 50,000 customers and aims to build a base of more than 1 million by 2011, each paying an annual fee of $119 for unlimited technical support services for a variety of common hardware and software products. The company primarily targets individuals and small business users, and will use the proceeds of the new offering for more aggressive expansion.
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