Zicom SaaS to raise ₹200 cr. for expansion

Zicom SaaS (Security as a Service) Private Ltd., a 100% owned subsidiary of Zicom Electronic Security Systems Ltd. (ZESSL), is planning to raise about ₹200 crore to fund its expansion plan, said a top company executive.

The company, which was started in 2013, is into IoT based electronic security services and reported a topline of ₹50 crore last year.

“We have sustained the business for over three years and now we need growth capital to expand its base and offer new services,” said Pramoud Rao, managing director, ZESSL.

“We are looking at raising ₹200 crore and for a big idea like this it is not difficult to raise money in today’s market,” he said.

The company is looking at strategic investors and private equity investors to raise capital.

The parent company ZESSL is currently passing through a tough time following huge losses reported at its middle eastern businesses following crash in oil prices. With debt of more than ₹700 crore, the company has undergone Corporate Debt Restructuring (CDR) and its lenders now own 51% stake in the company.

Commenting on the future, Mr. Rao said: “We have reduced investing in hardware business. We have changed the business model. We are now into services. We have completely de-focussed on our product business because when we started the product business in the 90s it was promising but now there is lot pressure on margins,” he said.

“We are de-focussing from being a purely hardware company to a product services company. So we are putting all our energy behind Zicom SaaS. We have stopped taking projects under Zicom,” he said.

Under Zicom SaaS, the company is providing services to ATMs and other clients. It is providing business intelligence to retail clients to count footfalls with the help of CCTVs and also using technology for loss prevention and tracking of individuals and pets. It is also into digital, data and mobile security as well as women’s security.