Mu Sigma Closes $108 Million Investment Round, Led by General Atlantic

Bangalore (and Chicago) based Mu Sigma, a pure-play provider of analytics and decision support services for global enterprise customers has closed $108 million investment round led by General Atlantic. musigmaThis is believed to be the biggest private-equity investment made to date in the emerging market for analytics services, and follows Mu Sigma’s April 2011 $25 million round led by Sequoia Capital (which also participated in this latest round, raising its stake in the company).

Mu Sigma is already profitable and can finance its own operations, but will use the investment funds to accelerate its growth in the burgeoning analytics services market. A portion of the proceeds are being used to purchase shares held by existing shareholders, all of whom will continue to have stakes in the company.

The company has grown rapidly since its founding in 2004; in fact, its 2008-2010 revenue growth of 886 percent earned Mu Sigma a spot in the Inc. 500 list of America’s fastest-growing private companies.

On the one hand you could think of us as consulting plus applied math minus the high cost. On the other hand, you could think of us as IT plus business plus applied math, [Dhiraj Rajaram, Founder/source]

Is BIG Data the next BIG theme? From forum [topic: What do you think of Mu Sigma’s 150 Million$ Funding?]

Analytics, data mining and other such “big data” efforts are likely to be big in the coming years. The volume of “data” being produced has rapidly outstripped the tools that can make sense of it, and information (and noise) overload is a very real problem. The exact nature of the solutions is still an open question – whether open frameworks, point solutions or service delivery models will be the ones that gain prominence. I would also take a wild shot at creating tools that could be built into apps and other software to enable various aspects of this, rather than an isolated analytics solution.

Recommended Read: What is the Big Fuss about Big Data?

Tool: Hadoop: From Toy Elephant to Jumbo Data Sets [A 101]

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