Bengaluru-based data science and artificial intelligence (AI) firm Tredence Inc, on Friday announced that it has raised $175 million (about Rs 1449 crore), in its Series B fundraise round led by Advent International, for a minority stake.
Advent will also join the company’s board following the fundraise.
VCCircle, in October, first reported that the private equity player and US-based Carlyle were in talks to invest in the data science firm.
According to a press statement, Chicago Pacific Founders, which made a $30 million investment in the firm in December 2020, will “continue to be a meaningful shareholder in Tredence.” VCCircle also reported that CPF was looking to sell its stake in the big data analytics startup.
These funds will be channelled to accelerate data-fuelled growth and AI value realization for industries. Advent will also work with the Tredence Analytics Solutions Pvt. Ltd to speed up investment in vertical and domain expertise, intellectual property and accelerator repository, channel partner development and operational excellence, as per the statement.
Tredence, which is based in San Jose and Bengaluru, was set up in 2013 by Shub Bhowmick, Sumit Mehra, and Shashank Dube, says its platform leverages business analytics, data science and software engineering to provide prediction and optimization solutions to sectors such as telecommunications, pharmaceuticals, and retail.
“Tredence has built the business with deep domain expertise that positions it well to become a category-defining leader in the space. We are very excited to partner with Tredence in the next chapter of growth as they build a $500M revenue organization,” said Shweta Jalan, Managing Partner at Advent International in India.
Founded in 1984, Advent International is a global private equity investor having made over 400 private equity investments across 42 countries, and as of June 30, 2022, with about $96 billion in assets under management.. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology.
Tredence competes with startups such as Mu Sigma, Fractal Analytics and Quantiphi Analytics. The data analytics sector has been seeing high investor interest. Fractal Analytics raised $360 million from PE firm TPG in January 2022, while Quantiphi Analytics raised about $20 million in a Series A fundraise round in 2019.
In April, Dhiraj Rajaram, the founder of AI and data analytics business MuSigma, bought out investors Sequoia Capital and General Atlantic and over 14 angel investors, Mint reported.
Tredence has doubled its talent base in the last 12 months and has over 1,800 employees across offices in San Jose, Foster City, Chicago, London, Toronto and Bengaluru. The company plans to hire another 500 employees to grow the total staff count to more than 2,100 by December, Mint reported in April.
Global IT research firm Gartner forecast the AI and data science platform market to grow to more than $10 billion by 2025 at a 21.6% compound annual growth rate.