VSOFT EYES 50 PERCENT REVENUES FROM INDIA

K Rajani Kanth, Chennai/Hyderabad, November 17, 2008
Business Standard

VSoft, a Hyderabad-based cheque imaging and data management software solutions provider, is shifting its focus to India, courtesy the economic turmoil in the US. The company, which at present garners 90 percent of its business from the US and 5 percent from India, is expecting the domestic market to contribute 50 percent by the end of the next financial year.

“The company has started deploying the Car/Lar cheque truncation and imaging software in India this year. It has implemented the solution at two public sector banks in the country and is doing a pilot with a large private sector bank besides half-a-dozen co-operative players in the National Capital Region (NCR),” Murthy Veeraghanta, chairman and managing director of VSoft, told Business Standard.

The cheque truncation system (CTC) comprises an image-capturing scanner and software. The process involves the scanning of obverse and reverse sides of the cheque and subsequent transmission of the data and images to the clearing house or branch. At present, cheques are physically submitted to clearing houses.

The RBI had rolled out CTS in the NCR last year on a pilot basis and is expected to zero in on one of the south cities before finally freezing on the specifications. The addressable market for CTS in India is estimated to Rs 500 crore. “The CTS mandate, especially for high-value cheques, offers a whole gamut of opportunities from the 120-odd major financial institutions, both domestic and MNCs, in the country,” he added.

VSoft, had in May 2007, acquired the business of Bangalore-based Coopman Consultancy Services, which brought in Suvikas – a core banking product developed specifically for urban co-ops and regional rural banks – into VSoft’s fold.