Ittiam Systems to go for second round of VC funding – (Financial Express)
April 19, 2001
Financial Express, Bangalore – eFE Bureau
Ittiam Systems to go for second round of VC funding
ITTIAM Systems Pvt. Floated by Srini Rajan former managing director Texas Instruments India, will be going for another round of funding in the next 6 to 12 months.
Formally announcing the launch of his independent DSP venture here on Wednesday along with 6 of his former TI colleagues, Mr Rajam said Ittiam systems had raised $ 5 million venture fund form Global Technology Ventures, the investment arm of Sivan Securities. “We will go in for second round funding to raise similar amount within 6 to 12 months to accelerate the development of our products,” he said. Bank of America Equity Partners also picked up a stake in the company, he added.
The company would roll out its first product within a week to a customer that operates in electronic equipment manufacturing, mobile switching and mobile handset.
On the business plans of ITTIAM, Mr Rajam said the revenue target of the company was currently being fine tuned.
However, he said the company would break even in two years. The company currently has a personnel strength of 40 people and would enhance 200 people by the end of next year.
“The US slowdown and the recession in the IT, telecom and wireless segments might open up added opportunities for us in developing products for third generations space” he said.
Ittiam has set up a subsidiary in the US and UK while representative office is being set up in Japan.
The company would be exclusively focused on DSP-based systems in wireline, wireless, audio-speech and video-imaging markets.