A number of international private equity buyout funds have been approached, and bids are anticipated by mid-October, sources stated.
Founder Arjun Rao Donakanti owns 87% of ValueLabs, along with his spouse Harini Rao Donakanti holding the rest.
With greater than 7,000 professionals and greater than 30 places of work worldwide, ValueLabs serves over 300 enterprise shoppers at the moment. In response to the most recent out there knowledge, the corporate posted ₹614 crore in income in FY24, posting a 2% progress. Nonetheless, Ebitda declined by 16% to ₹84.9 crore, and web revenue fell 19% to ₹46.7 crore, as per knowledge from Tracxn. Arjun Rao Donakanti did not reply to an e mail despatched final week.
Stay Occasions
“The mix of founder-led corporations, under-penetration in international markets, and potential for consolidation creates a promising atmosphere for personal equity investments,” stated a Mumbai-based PE fund supervisor. “Moreover, the recurring revenues and long-term contracts typical in tech providers present monetary stability that’s extremely enticing to traders searching for predictable returns.”
Based in 1997, ValueLabs gives numerous providers together with software program growth, digital options, infrastructure engineering, information course of outsourcing, product growth, digital enablement, automation, AI/ML, and digital transformation.
It competes with main companies like EXL, UST, Fractal Analytics, Accion Labs, and Happiest Minds. Notably, Accion Labs-backed by PE funds True North and TA Associates-is additionally on the block. The potential deal has drawn curiosity from a number of patrons together with PAG and Apax Companions with an estimated valuation of $800 million to $1 billion, ET first reported on August 22.
