Wednesday, August 13, 2008

Indian Angel Network Invest in Legal KPO

LPO seems to be the flavor these days and there have been significant news in the market related to LPO industry investments and expansion. In addition to IAN funding TechLit Solution as mentioned in the news below Infosys entered LPO Industry at the end of 2007 and various BPO/KPO firms are speculating an entry in the market. I know about another LPO firm based in Bangalore and US looking for about 3m USD investment.

In addition to LPO industry, I believe that Corporate Law industry in India has a significant potential and in recent times multinational firms have increased India related activity significantly. Firms like AZB have been able to attract young lawyers working for big 4 in UK to move to India.

Axience ( recently participated in producing a research report to assess impact of Liberalization of Legal Industry on Indian GDP and our findings were interesting and we consider legal services market as very high growth potential market in the services segment.

News about IAN investment in TechLit

Members of the Delhi-based Indian Angel Network (IAN) has acquired a 20 percent stake in US-based legal process outsourcing (LPO) venture TechLit Solutions for $1 million, valuing the start-up at $5 million. Techlit was started in January 2008 by Neal Gupta (who is also a member of IAN) along with the co-founders of Aptara, a US headquartered firm which offers composition and publication services to publishers of books and journals.

IAN is a Delhi based angel investing forum formed by a group of individuals investors which includes, among others, serial entrepreneur Rohit Chand (Axis IT&T, IIS Infotech), besides Rajan Anandan, former Dell chief in India and currently Microsoft MD in India, Avinash Singh (CEO & MD of Excel Ventures), Ajay Garg (founder of Equirus Capital) and Alok Mittal, Managing Director, Canaan Partners.

TechLit provides litigation support services to law firms and corporate general counsels in the US in the form of electronic data. It currently has an office in Seattle and its business model includes capturing, preserving and managing data for clients by leveraging technology and offshore resources. The funds raised will help TechLit expand its services in the US, while setting up an offshore technology operation in India.

The company plans to hit the market with a public float in the next three years.IAN, which has close to 80 members, have made 16 investments in the last two years in sectors like information technology, intellectual property, hospitality, mobile, education and internet

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