Emagia Dreams Up $7M Third Round As It Eyes New Markets
By John Galante
10/20/2004
Enterprise cash flow software and service provider Emagia Corp. said it
raised $7 million of third round financing as it looks to expand both
geographically and into new industries.
New investor Timeline Ventures led the oversubscribed round, which
included existing investors Sigma Partners and WestBridge Capital Partners.
Chairman, Founder and Chief Executive Veena Gundavelli told VentureWire
the financing was a significant up round that more than doubled the
company's valuation, compared to the close of the second round of funding.
"This funding is for expanding our products and services line, and
extending our sales and marketing to new markets and new industries. We
will be expanding into Europe and several other vertical industries like
pharma, transport, chemicals and insurance," Gundavelli said.
As a result of the investment, Venture Partner Sangeet Chowfla of
Timeline will be joining the board, which includes Gundavelli, Mark Pine of
Sigma, Sumir Chadha of WestBridge Capital, Shailesh Mehta, former
chairman and CEO of Providian Financial Corp., and Margaret Taylor,
president of PeopleSoft Investments.
The most recent iterations of Emagia's suite of cash flow management
products were released to the market in February. The company's
end-to-end capital management tools involve cash in-flow products such as credit
strategy, deduction management and cash flow analytics applications,
and cash out-flow products such as payment and supplier relationship
management as well as forecasting.
Emagia's larger customers include Textron Inc., Solectron Corp., BMC
Software Inc. and Xilinx Inc.
Gundavelli said the company expects to achieve around 300% revenue
growth next year and is likely to achieve profitability by the middle of
2005.
Previously, the company raised $13.5 million in two rounds from Sigma,
WestBridge, Solix Technologies and B3 Ventures.
Emagia has 100 employees and is currently expanding its sales and
marketing division.
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