Hemant, Newgen isn’t just focused on document management systems; it also offers a low-code platform that allows both clients and Newgen itself to rapidly build products for various verticals, such as loan management, supply chain finance, customer onboarding, and more.
If you’ve been following Newgen for some time, you might recall that after COVID, a regulatory change in the U.S. created a demand for specific software. In just a month, Newgen developed a solution using its low-code platform to meet this requirement, making an entry into several smaller U.S. banks. In the U.S., Newgen’s competition includes Pega Systems, Appian for low code platform. Cracking the U.S. market would be a major win for Newgen, as it would be the only Indian product company competing directly with Pega in this space.
Just a couple of days ago, Newgen announced on the NSE that it has been featured in the Gartner Magic Quadrant 2024 for low-code platforms. I haven’t been able to find the 2024 Gartner document yet, but if Newgen is indeed featured, it would be the first Indian company to appear in that quadrant.
One of the things I really admire about Newgen is its employee retention. I have a couple of friends who have been working there for over 10 years, which speaks volumes about their employee retention policy.
And yes, valuation is definitely high, which is for everything in this market, but I am hoping it to crack US market, and if it does, I hope that it shows real product business operating leverage kick in.
Disclosure – Invested. Biased. Holding from Rs 250 level.
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