Lifetree

Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number	26502
Company name	Lifetree Convergence Ltd.
Country	India
Sector	Professional, Scientific and Technical Services
Environmental category	C
Department	Global Inform. & Comm. Tech.
Status	Active

Date SPI disclosed	October 17, 2007
Projected board date	November 19, 2007
Previous Events	Invested: October 17, 2008 Signed: August 5, 2008 Approved: March 20, 2008

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Lifetree Convergence Limited (Lifetree or the company) provides advanced Billing and Business support software solutions to telecommunications carriers across the globe. The company is headquartered in New Delhi, with its software development centers in Bangalore. Lifetree provides telecom carriers with end-to-end Billing, Business Support Systems and Customer Relationship Management functionality across:

- wireline, wireless and IP;
- pre-paid and post-paid customers;
- voice, data and content services.

Add-on products include a web based self care portals for customers, dealers and call centre users, an electronic bill presentment solution and an interconnect solution for telecom operators. The company also provides value added services for the aggregation and distribution of content-based services across devices. Lifetree has also launched a Service Oriented Architecture based portal product designed to integrate access to disparate applications.

The company has completed over 40 installations in the Asia Pacific, Middle East and Africa region and is poised to leverage this capability in developed markets. IFC proposes to invest in Lifetree for acquisitions and expansion capital as the company seeks to scale operations.

Anticipated development impact of the project

An investment in Lifetree would:

- support a promising technology product company in India,
- provide employment opportunities in leading edge technology development,
- improve technical skills of local engineers,
- demonstrate the ability to produce world class technology companies in India, and
- provide support to a critical software provider to existing IFC customers in emerging markets, such as MTN and Celtel.

An investment at this stage will essentially allow a local industry leader to expand its range of products and services to measure with international peers, while benefiting the local population through job creation and skill development.

IFC's expected development contribution

- Demonstration Effect:

The Indian technology industry contributes more than 4% to GDP and accounts for more than 20% of exports, yet the Indian IT market is primarily comprised of services companies. India regularly produces world-class engineers but this talent has typically emigrated to the United States to find challenging work. An investment in Lifetree would support a promising technology product (rather than just services) company in India, provide employment opportunities in leading edge technology development, demonstrate the ability to produce world class technology companies in India, improve technical skills of local engineers, and support Lifetree as it seeks to expand globally.

- Industry Expertise:

Lifetree seeks a relationship with IFC based on IFC’s knowledge and experience in the telecom industry, extensive portfolio of potential clients across emerging markets, and prior investment experience in growth companies at a similar stage of development in emerging markets. Lifetree has encouraged IFC to play an active ongoing role to provide advisory assistance and access to others in the telecom and other industries. IFC will also be playing an active role in promoting the telecom industry in emerging markets and assisting IFC clients such as the MTN Group and Celtel.

Environmental and social issues - Category C

This project will be focused on designing and marketing technology solutions, with no manufacturing, construction, or access to public properties, and any acquisitions are expected to be similar to the sponsor's existing business. Therefore, the project has been classified as a Category C project according to IFC's Environmental and Social Review Procedure.

IFC PROJECTS