ChrysCapital Acquires Software Engineering and Digital Services Player Xoriant

Xoriant, a premier Software Engineering and Digital IT services provider with Fortune 100 customers worldwide, today announced its acquisition by ChrysCapital. This marks a brand-new phase of growth for Xoriant with its rich culture of innovation, global presence, and more than 30 years of passion, purpose, and progress. ChrysCapital is a leading private equity firm with a successful track record of investing in Business Services (IT/Engineering/Business Process), Financial Services, Pharma and Consumer focused companies. This is the second buyout from ChrysCapital's ninth fund and its ninth Business Services buyout since inception.

Headquartered in Sunnyvale, California, Xoriant provides services and solutions focused on Digital Product Engineering, Cloud Infrastructure & Operations, Security, Data Engineering/Management & Analytics. It also provides Enterprise Services including Applications Development & Maintenance to customers spanning the BFSI, High Tech, Healthcare, Pharma, Industrial Manufacturing, Retail, Telecommunications, and Automotive Sectors. A majority of Xoriant’s customers are global enterprises that are leaders within their respective verticals.

With a 5000+ global delivery workforce, Xoriant employs best practice methodologies, accelerators, and technologies supported by world-class IP to deliver impressive customer NPS, as evidenced through long-standing client relationships. The Company has also been recognized for its workforce practices with listings in awards such as ‘India’s Top Best Tech Companies to Work For’, ‘India’s Best Workplaces in IT & IT-BPM’.

Girish Gaitonde

Girish Gaitonde, Founder & CEO, Xoriant, stated: “When Xoriant was founded as TekEdge in 1990, I did not predict the scale and reputation that the company would achieve in the next three decades. My sincere appreciation to our 5000+ employees and associates across the globe who are our true X-Factor, as well as our customers who have repeatedly shown their trust in us. I am excited to team up with Sanjay Jalona and ChrysCapital for the next phase of this journey and benefit from their vast experience in building large client relationships with successful global growth. I look forward to the opportunity to accelerate value creation for all our stakeholders.”

Sanjay Jalona

Akshat Babbar, Director, ChrysCapital, said, “At ChrysCapital, we have developed deep expertise with Digital IT Services across industry verticals. Given our experience in the space, we are confident of the value addition that ChrysCapital would bring to Xoriant in this journey. We are committed to building further on the company’s attractive client set, long-standing relationships, domain and service-line expertise as well as Digital IT offerings.”

Sanjay Jalona, Operating Partner, ChrysCapital, mentioned, “My interactions with Girish and Xoriant team during the last several months have made me realize how special the company is. Everyone at Xoriant brings unparalleled product and application engineering heritage and displays core values of the company – customer first, passion for technology and innovation, respect for individual, ownership and excellence, and open and collaborative culture. I look forward to partnering with the leadership team to scale the organization to its true potential in the months and years ahead.”

For the purpose of this transaction, Sidley Austin served as the legal counsel for ChrysCapital and EY as the financial and tax advisor. Arnold and Porter served as legal counsel for Xoriant. Avendus Capital Inc. was the exclusive financial advisor to Xoriant.

About Xoriant

Xoriant is a Silicon Valley headquartered digital product engineering, software development, and technology services firm with offices in the USA, Europe, and Asia. From startups to Fortune 100, we deliver innovative solutions, accelerating time to market and ensuring our client’s competitiveness in industries like BFSI, High Tech, Healthcare, Pharma, Industrial Manufacturing, Retail, Telecommunications, and Automotive.

Across all our technology focus areas – digital product engineering, DevOps, cloud, infrastructure and security, big data and analytics, data engineering, management, and governance, and IoT – every solution we develop benefits from our product engineering pedigree. It also includes successful methodologies, framework components, and accelerators for rapidly solving important client challenges. For 30 years and counting, we have taken great pride in the long-lasting, deep relationships we have with our clients. For further information about Xoriant, please visit www.xoriant.com.

About ChrysCapital

Established in 1999, the ChrysCapital group manages $5 billion across nine funds and is one of the leading investment firms based out of India. With around 100 investments since 1999, ChrysCapital has valuable experience in investing across a breadth of sectors that leverage growth and the India cost advantage to build world-class companies. The firm raised its latest $1.4 billion ninth fund in 2022 and earlier announced its first investment, the buyout of IDFC AMC along with Bandhan Bank and GIC, in April 2022. The firm has realized $6.5 billion from over 75 exits in India. The ChrysCapital group’s funds are ranked in the top decile of global private equity funds of similar vintage. Within business services, investments include Infogain, LiquidHub, ResultsCX, GeBBS Healthcare, QuEST Global, Mphasis, Hexaware, LTI, HCL Technologies, Infosys, and Spectramind. For further information about ChrysCapital, please visit www.chryscapital.com.

ChrysCapital, True North Managers and Others Buy Minority Stake in QuEST Global

ChrysCapital, True North Managers LLP, and other Institutional Investors invest a total of approximately US $150 million in the company

Bengaluru, Aug 23, 2021: QuEST Global, a global product engineering and lifecycle services company, announced that leading global investors - ChrysCapital, True North Managers LLP, and other institutional investors – have invested a total of approximately US $150 million to purchase minority stakes in the Company. The investors have completed the purchase of a portion of the shares held by the co-founders and management team of QuEST. The existing investors - Bain Capital, Advent, and GIC, continue to remain invested. O3 Capital acted as the sole financial advisor to the transaction.

Commenting on the investment in QuEST, Sudip Nandy, Sr. Advisor. Enhancin, ChrysCapital, said, “ChrysCapital has a strong track record of over 20 investments in the Technology Services sector, which has been an integral part of our portfolio across funds. QuEST is one of the leading players in the engineering services space and has consistently outperformed its peers and demonstrated the ability to scale accounts in a fragmented industry, by becoming the core engineering partner to most of the top global firms across its target industry verticals. We are excited to back Ajit and the executive team at QuEST and look forward to working with them on the journey ahead."

"QuEST is one of the top five players in the pure-play ER&D space and has built unique and deep expertise in an industry that is undergoing unprecedented digital disruption. As a leader in the engineering services space, QuEST has been offering strategic services to its customers rather than just a scale or merely cost differential. We were very impressed by the depth of engineering expertise and the diverse industries and emerging technologies in which QuEST is helping customers. We believe the ER&D space will continue to see significant growth and innovation in the years ahead, and we look forward to working with QuEST’s management team to capture these opportunities." said Prasad Thrikutam – Partner, True North.

Ajit Prabhu, Chairman & CEO, QuEST Global, said, “We started QuEST with the vision of becoming the most recognized and trusted global engineering partner for our customers across industries. The investment by three of the most respected global investors, despite the ongoing pandemic crisis, is a testament to our ability to build and grow our business to become the most trusted thinking partner to customers. It also crystallizes the value we have created for our shareholders and employees who have placed their belief in us and partnered with us in this journey."

Ajit further added that as the industrial world bounces back into pre-pandemic days, enterprises would need help from companies like QuEST – to bridge the gap between the industrial and digital world - and rebuild the lost traction. “Our focus will be to develop capabilities in hi-tech, software, digital segments along with other industries and help our customers solve their engineering challenges,” he said.

With the pandemic accelerating digital transformation across industries, enterprises are investing heavily in digital solutions to lead and take advantage of this wave of software product engineering. Being a trusted thinking partner to its customers, QuEST has been helping solve some of the toughest problems they face by creating new products, opening new market opportunities, and maximizing efficiency. The company also provides an opportunity to its employees to learn and grow without limitations, develop expertise, collectively achieve aspirations and experience a rewarding journey.

About QuEST Global

For more than 20 years, QuEST Global has been a trusted global product engineering and lifecycle services partner to many of the world’s most recognized companies in the Aerospace & Defense, Automotive, Energy, Hi-Tech, Medical Devices, Rail, and Semiconductor industries. With a presence in 13 countries, 54 global delivery centers, and 11,250+ personnel, QuEST Global is at the forefront of the convergence of the mechanical, electronics, software, and digital engineering innovations to engineer solutions for a safer, cleaner, and sustainable world. QuEST Global’s deep domain knowledge and digital expertise help its clients accelerate product development and innovation cycles, create alternate revenue streams, enhance consumer experience and make manufacturing processes and operations more efficient.

India's Oldest PE Firm ChrysCapital Raises $850 Mn in Record 4 Months

India’s oldest Private Equity (PE) firm ChrysCapital has closed its latest eighth fund of $850 million corpus in record four months making it fastest fund-raising by any India-bred private equity firm.

This speedy fund-raise suggests that global risk capital providers are positive despite of macro-economic uncertainties worldwide.

The four partners of the asset manager pumped in about $75 million from their side, taking the overall corpus of the fund closer to $925 million.

Founded in 1999, ChrysCapital's partners are -- former Goldman Sachs executive Kunal Shroff, ex-Ranbaxy honcho Sanjiv Kaul, former KPMG executive Ashley Menezes and manufacturing expert Sanjay Kukreja as partners.

[caption id="attachment_128054" align="aligncenter" width="621"] (From left) ChrysCapital partners Ashley Menezes, Sanjiv Kaul, Sanjay Kukreja and Kunal Shroff. Photo: Manoj Verma/LiveMint.com[/caption]

ChrysCapital, which has $4 billion worth of total assets under its management, is known for its 2016 investment in India’s largest stock exchange NSE and cutting other lucrative deals in non-bank financial services company Hero FinCorp and skin care specialist Curatio.

“Given our strong pace of deployment of over $200 million per year and an active pipeline, we decided to embark on raising eighth fund in August 2018,” said Kunal Shroff, managing partner at ChrysCapital.

ChrysCapital has made 80 investments in India and exited 60 of these since its inception. The firm's notable investments in the past include Axis Bank, HCL Technologies, and KPIT Technologies.

Last month, ChrysCapital has acquired a controlling stake of 80% in US-based healthcare service provider GeBBS Healthcare Solutions, in a deal worth Rs 1,000 crore ($140 million).

In April last year, the PE firm has hired former SBI chairperson Arundhati Bhattacharya as an advisor.

Source - Times of India