The Hindu : IFC invests in Indian IT sector

Online edition of India's National Newspaper
Wednesday, Nov 27, 2002

Business

Business

IFC invests in Indian IT sector

By Our Staff Reporter

CHENNAI NOV. 26. The International Finance Corporation, the private sector development arm of the World Bank Group, will invest $10 million in New Path Ventures (a California-based venture capital fund), which is incubating companies in the field of semiconductor design and related software. In addition, IFC has the authority to invest up to $10 million in future funding rounds of New Path's incubated companies, for a combined investment of up to $20 million.

According to a release, the main aim of New Path Ventures is to create leading-edge technology companies, which take advantage of the cost effective development and implementation strengths of India. Each company will also have a product definition and marketing unit in the U.S.

The New Path Ventures will create three to five companies, investing $5 to $10 million in each, and will actively manage each company through prototype completion.

New Path has raised total funding of $56 million from an investor group including New Enterprise Associates, ChrysCapital, CMEA Ventures and Adams Street Partners.

The World Bank Group's Director, Mohsen Khalil has stated in the press release that the New Path is an important initiative for the future development of India's information technology sector, representing a strong opportunity to strengthen India's position in the high-skill, high value-added areas of the industry.

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