Virinchi Tech inks 3-year USD 1.2 mn pact with US Co.
Virinchi Tech inks 3-year USD 1.2 mn pact with US Co. Hyderabad-based Virinchi Technologies (Q, N,C,F)* signed a 3-year service agreement with a US-based retail micro lending company. The guaranteed annual revenues from this contract extension are estimated to be about USD 1.2 million with a potential for revenue of over USD 2 million per annum over the three-year period. Anil Kumar Pinapala, CEO of the company said, “The extension of the contract from one of the largest company in the industry shows the growing confidence and faith of clients on Virinchi`s enterprise products and solutions and the long-term commitment they have with us.“ Shares of the company gained Rs 1.15, or 3.33%, to trade at Rs 35.70. The total volume of shares traded was 7,675 at the BSE. (10.16 a.m, Tuesday)
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The contract is an extension of application servicing agreement with the retail micro lending companies for whom Virinchi has been providing services for the past 18 months.
The ASP (application service provisioning) model ensures a steady flow of revenue to the company giving a greater revenue predictability and sustainability, Pinapala added.
