By Lancelot Joseph. Executive Editor, Business India

Virtual Galaxy Infotech (VGIL), a software-as-a-service (SaaS) and enterprise software firm, is on a massive expansion plan to enter the global markets, especially Africa.  The Nagpur-headquartered VGIPL’s products include e-banker, a robust core banking solution designed specifically for banks, co-operative societies, SACCOs, micro-finance institutions, fintechs and NBFCs. It also offers IBS-ERP, an ERP solution for small and mid-sized enterprises, and e-APMC, an e-governance software developed for Agricultural Produce Market Committees (APMCs) and government organisations. 

Incorporated in 1997, VGIL has increased its presence exponentially since inception and transformed itself from a local start-up to a global IT solutions provider. It now spans 20 Indian states, showcasing its deep penetration into the domestic market. This extensive product range has allowed VGIPL to cater to diverse clients, from urban co-operative banks in metropolitan areas to rural financial institutions in remote regions.

Moreover, in recent months, it has entered international markets, too. On the global front, VGIL has made inroads into the African market, with a strong presence in countries, such as Tanzania, Malawi and Ethiopia. The company’s success in Africa is exemplified by its long-standing relationships, including an 11-year partnership with a prominent client in Tanzania. This expansion reflects VGIL’s ability to adapt its solutions to diverse market needs and regulatory environments.

“We offer our software solutions through both licences and subscriptions, with a focus on growing our revenue by acquiring new customers and expanding the user base within existing customer organisations,” elaborates Sachin Pande, co-founder, VGIL. “This dual approach enables us to maximise market penetration and foster long-term client relationships.”

With expanding boundaries, VGIL has increased its product portfolio too. Recently, it added V-Pay (a comprehensive enterprise digital payment solution), e-autopsy (an automation solution for the post-mortem departments of recognised hospitals) and VGST (which facilitates seamless GST compliance by offering tools for filing returns) to its product portfolio. Apart from this, it also offers solutions for Loan Origination Systems (LOS). This helps clients create and process loan applications, including KYC norms, disbursement of loans, recording and maintenance of requisite documentation in the said process and monitoring of loan cases.

“VGIL’s revenue model is increasingly shifting towards a SaaS approach, which now accounts for about 50 per cent of recurring revenue,” informs Tushar Agarwal, a Dubai-based pre-IPO investor. “This transition to SaaS aligns with industry trends and offers several advantages, including predictable revenue streams, scalability, and enhanced customer retention. Also, the company aims to expand its SaaS revenue to 80 per cent or higher in the coming years, reflecting its commitment to this business model. This SaaS-focussed strategy, combined with VGIL’s diverse product portfolio and expanding global presence, positions the company for sustained financial growth and improved profitability in the future.”

“We have built our go-to-market strategy on direct sales and collaborations with channel partners,” adds co-founder Avinash Shende. “In India, we handle direct sales through our in-house Business development team, while our channel partners and dedicated sales and business development teams manage sales in overseas markets.”  As of 30 June 2024, VGIL has two channel partners – one in Tanzania and one in Israel. Further, it is signing agreements with seven prospective channel partners globally in other countries, including Ethiopia, Malawi, Liberia, Uganda, South Africa, Kenya, Seira Leone, Myanmar, Vietnam and Laos, to enhance its market reach and business growth.