Hong Kong-based private equity fund BPEA EQT has acquired a majority stake in Chennai-headquartered digital engineering firm Indium Software, marking its latest bet in the country.
EQT claims that it would leverage its expertise in tech services and help Indium’s management in strengthening its go-to-market strategy while continuing to build on next generation offerings across generative AI and advanced analytics.
EQT claims that it has invested around $11 billion in the tech sector in Asia, besides having in-house digitalisation capabilities, and access to a global network of industry experts.
The financial contours of the deal couldn't be immediately ascertained. Leading investment bank Avendus Capital acted as financial adviser to Indium on the said transaction.
"Indium has impressive digital capabilities and a client roster of global blue-chip enterprises," said Hari Gopalakrishnan, partner and co-head of BPEA EQT India.
Indium was co-founded in 1999 by Ram Sukumar and Vijay Balaji. It currently boasts of a team of about 3,000 employees.
Indium claims to have grown at a CAGR of around 50% over the last three years. Its blue-chip customer base features multiple Fortune 500 enterprises across various sectors, with a focus on technology, BFSI and healthcare verticals.
"Over the years, we have embraced multiple technology shifts, and today, have become a trusted partner to several enterprises accelerating on their digital and AI journeys," said Sukumar, who will continue to lead the firm as CEO
The Indian information technology sector has been a hot area for PE firms over last few years. American buyout giants Blackstone and Carlyle, the UK’s Apax Partners and India's True North are among some large PE firms that have invested in IT firms here.
In October, True North had invested around $75 million in iLink Digital for a minority stake.
Similarly, growth stage investor A91 Partners had also backed a Chennai-based IT services firm, Kaar Tech.
In May, Apax Partners agreed to acquire travel and logistics service provider IBS Software for $450 million.