Jaipur-based Rajasthan Ventures Capital Fund (RVCF) has acquired 32 per cent stake in its first round of funding in Mumbai-based NexTenders (India) Pvt Ltd for an undisclosed amount. RVCF has invested in this company through its Rs 150 crore SME Tech Fund.
NexTenders is engaged in web-based procurement of goods and services and mainly caters to various state governments, government agencies and public sector undertakings – both in India and abroad. For this purpose, the company utilises e-procurement technologies, including e-tendering, e-auctions, e-catalogues, etc.
The funding will enable NexTenders to widen its customer base by enhancing existing product features and exploring new market opportunities.
“With increased emphasis on transparency in government procurement in India, there is a huge potential for growth of e-procurement/e-tendering services,” said Girish Gupta, CEO, Rajasthan Venture.
NexTenders has been providing secured e-procurement/e-tendering solutions, both as application service provider (ASP) and licensing models. “Its prestigious clients include the state governments of Maharashtra, Chhattisgarh and Madhya Pradesh, as well as Municipal Corporation of Delhi, Department of Atomic Energy and ISRO. The company uses a unique technology to ensure stringent security measures, required to maintain confidentiality and transparency in the bidding,” detailed Gupta.
India’s focus on e-procurement comes from the National E-Governance Plan (NEGP) 2003, which recognises it as a priority area for governance, along with various other initiatives such as e-taxes and e-banking. The Ministry of Finance has also issued an ordinance, calling for all central government departments to shift to mandatory e-procurement in a phased manner, beginning from 2008.
RVCF SME Tech invests in IT, education, retail, healthcare, agro products, auto components and other growth sectors.