Motilal Oswal arm picks up stake in Effort BPO
Funds managed and advised by Motilal Oswal Venture Capital Advisors Pvt Ltd have picked up a stake in Mumbai based outsourcing firm Effort BPO Ltd, reports Lalatendu Mishra.business Updated: Jan 13, 2008 21:15 IST
Funds managed and advised by Motilal Oswal Venture Capital Advisors Pvt Ltd have picked up a stake in Mumbai based outsourcing firm Effort BPO Ltd by investing Rs 25 crore in two tranches.
Motilal Oswal Venture Capital is a wholly owned subsidiary of Motilal Oswal Financial Services Ltd, a leading financial services group.
According to officials, the investment in Effort BPO offers the funds an opportunity to participate in the fast growing domestic outsourcing space. The amount will be utilized by Effort for its capacity expansion. In the next three years Effort has outlined an investment plan of Rs 100 crore.
Motilal Oswal Venture Capital chairman Raamdeo Agrawal said, "There is tremendous growth expected in various sectors including BFSI, telecom and IT. Outsourcing will play a major role and companies like Effort, which have established strong technology practices, will hugely benefit from this upsurge in outsourcing."
Akshay Chhabra, founder and CEO of Effort said that the company would concentrate on class B cities for their second phase of expansion and is already in talks with the government of Madhya Pradesh to set up a hi-tech BPO Park in Bhopal. The company has plans to add 10,000 to 12,000 jobs by 2011.
Prithvi Consultants acted as the exclusive financial advisors to Effort on the transaction.
Effort BPO serves as an integral service arm of most of the leading banking and financial institutions across business functions from sales to customer services. Recently it had entered into a joint venture with a Chinese telecom player to operate BPO operations in China.