UTI Venture Funds, the venture capital arm of Unit Trust of India, and TDA Capital Partners have invested $2.3 million for a minority stake in RevIT Systems Private Limited and its subsidiary, Sherpa Business Solutions, a healthcare and publishing business process outsourcing company, based in Chennai.

RevIT currently services healthcare insurance companies out of the United States and at present has 450 personnel in Chennai. "We want to increase our headcount to 1,000 by next April," Raju Venkatraman, CEO, Sherpa, said on Tuesday.

"The company is targetting a revenue run rate of $12 million by next March from the present $3.5 million. The promoters are also investing $1 million in the venture," he told reporters in Bangalore.

"We should be breaking even as far as cash breaking is concerned by next month, while full profitability will definitely be achieved this year," he said.

This was UTI's first BPO funding and it would soon come out with some more BPO exposures, Raja Kumar, CEO and managing director UTI Venture Funds, said.

RevIT's strong presence in the US markets and its "understanding of multi billion dollar US healthcare market and its unique delivery capabilities will help the company to achieve significant success," he said.

The next round of funding would be "strategic in nature largely, for a few acquisitions which we have targeted," Kumar said.

UTI Venture Funds, which has had 12 exposures so far, is seeking opportunities in the life sciences sector. "We are looking at two more pharma opportunities and also healthcare and telecom," Kumar said.

RevIT's customers include Magna Care, Blue Cross Blue Shield in Michigan (healthcare), and Edward Brothers, Harvest International and Publishing Dimensions (publishing).

TDA Capital is a specialised manager of private equity and venture capital investments in the emerging world.

In its India Technology Fund, TDA makes investments in companies providing IT and BPO services to a global clientele, using the India offshore delivery advantage.