In India, the banking sector is undergoing a significant transformation, driven by advancements in technology. Banking technology solution providers play a crucial role in this evolution, offering innovative solutions that enhance operational efficiency, improve customer experiences, and facilitate digital transformation. Among the notable players in this space is Virtual Galaxy Infotech Ltd. (VGIL), founded in 1997 in Nagpur by visionary entrepreneurs, including its co-founder Sachin Pande. Starting as first-generation entrepreneurs, they aimed to revolutionize banking technology. Over the past 27 years, Virtual Galaxy has evolved from a small local startup into a global IT solutions provider now operating in 20 Indian states and expanding its reach into Africa and the Asia Pacific region.

Their journey has been characterized by continuous innovation and a strong commitment to adapting to market needs. The company secured its first significant project with a cooperative bank in 1998, which established a solid foundation for its growth in the banking sector. Today, Virtual Galaxy Infotech proudly serves over 200 banks and cooperative societies across India and Africa, offering core banking and digital payment solutions.

A significant milestone in Virtual Galaxy's journey occurred on September 12, 2024, when it transitioned from a private limited company to a public limited company, paving the way for an upcoming Initial Public Offering (IPO). This transition not only reflects the company's impressive growth trajectory but also underscores its commitment to expanding its impact in the IT and financial technology sectors. CIO Insider recently engaged in a one on one interaction with Avinash Shende, Chairman & Executive Director. Let's dive in to know more.

What range of solutions do you provide, & how do you cater to the unique needs of your clients?

At VGIL, we offer a wide array of solutions specifically designed for the Banking/BFSI, Fintech, ERP, and E-Governance sectors. Our flagship product, E-Banker, is an AI-driven Intelligent Core Banking Solution that automates both corporate and retail banking operations. Fully web-based, real-time, and centralized, E-Banker ensures regulatory compliance while facilitating efficient management of banking activities.

In addition, we provide V-Pay, our digital payment solution, which encompasses services such as UPI QR, PoS/Soft PoS, Payment Gateway, Bill Payments, AEPS, and Micro ATM. For enterprises, we offer IBS ERP, an industry-specific ERP solution tailored to sectors like Solvex, Sugar, Steel, and Textiles.

Within the E-Governance sector, we have successfully executed projects for various government agencies, enhancing administrative processes and service delivery. We also deliver specialized solutions, including E-Autopsy for post-mortem departments and a comprehensive cybersecurity product tailored for the BFSI and government sectors.

To meet the specific needs of our clients, we emphasize customization and flexibility. Our solutions support multilingual functionality and offer enhanced API integration for seamless compatibility with existing systems. Additionally, we provide data center services, disaster recovery, and cloud solutions to complement our software offerings.

How does Virtual Galaxy Infotech main- tain its technological competitiveness, & what recent trends or capabilities have been incorporated into your solutions?

At Virtual Galaxy Infotech, remaining at the forefront of technology is essential in our industry. We sustain our competitive advantage through ongoing investments in research and development. Our R&D team, consisting of over 100 engineers, is dedicated to integrating cutting-edge technologies into our offerings.

Recently, we have made substantial investments in artificial intelligence and machine learning capabilities. For example, in our E-Banker product, we have incorporated AI-driven predictive analytics to enhance personalized customer experiences. We are also utilizing the latest technologies to bolster security in our digital payment solutions.

Additionally, cloud computing is a key focus for us. We are transitioning many of our solutions to cloud native architectures, which provide greater scalability and flexibility for our clients. We are also improving our data analytics capabilities, enabling clients to gain deeper insights for informed decision-making.

In response to the increasing cyber security threats, we have developed V-SOC, our Virtual Security Operations Center. This solution delivers comprehensive network security and managed services, addressing the critical need for robust security measures within the BFSI sector.

Can you explain the team structure and the expertise they contribute to your projects?

Our team is our most valuable asset. We currently employ over 325 professionals, including software developers, system administrators, project managers, and banking &

finance domain experts. Our R&D team, consisting of more than 100 engineers, spearheads our innovation initiatives.

What distinguishes our team is not only their technical proficiency but also their profound understanding of the banking and financial sectors. Many of our key middle and upper management members have been with VGIL for 10-15 years or longer, ensuring continuity and a wealth of institutional knowledge.

We have a robust leadership team, with myself and Sachin Pande leading the way, each bringing over 30 years of experience in the IT industry. Our backgrounds in computer engineering and IT management lay a strong foundation for steering the company’s technical and strategic direction.

Sachin Pande, Managing Director & CTO

What recent accolades has Virtual Galaxy Infotech (VGIL) received?

VGIL has recently earned several prestigious awards, highlighting its leadership and commitment to innovation. In May 2024, the company received the Asia Leadership Award, with co-founders Avinash Shende and Sachin Pande recognized as CEOs of the Year. It was also honored with the Global Fintech Award from the CIO Forum for excellence in Integrated MIS for Banking & Finance. Furthermore, at the June 2024 BFSI AI & Analytics Breakthrough Awards, VGIL was acknowledged for having the Best Regulatory Reporting Core Banking Solution, solidifying its status as a fintech trailblazer.

What does the future hold for Virtual Galaxy Infotech?

The future for VGIL is incredibly exciting. We're on a strong growth trajectory, aiming to increase our revenue from ₹61.46 crores in FY 2023-24 to ₹500 crores by FY 2027-28, largely through international expansion in Africa and the Asia Pacific. We are also shifting towards a SaaS model, which currently contributes about 50 percent of our recurring revenue. Our focus includes expanding our product portfolio with a comprehensive cybersecurity solution for the BFSI and government sectors, as well as a specialized hospital management solution. We’re investing heavily in AI, ML, blockchain, and cloud computing to make banking seamless and secure. Our upcoming IPO will fuel our growth, and we remain committed to driving financial inclusion and empowering underserved markets.