Altimetrik see its $1bn target revenue fast tracked with TPG on board | Company News

TMI Newsdesk
4 Min Read

Raj Sundaresan, CEO Altimetrik

Raj Sundaresan, CEO Altimetrik

With private equity player TPG Capital acquiring a 60 per cent stake in pure-play digital business firm Altimetrik, it indicates the growing appetite for IT and product engineering firms among investors.

With TPG on board, senior executives of the US-based firm with operations in India believe it is on target to achieve $1billion in revenues.

Raj Sundaresan, chief executive officer, Altimetrik, who is on an India visit after the deal, said the firm’s target of being a $1 billion firm has got more fuel as TPG gives it access to its over 300 portfolio firms.

“The last several years we have been witnessing a compounded annual growth rate of 30 per cent. With TPG on board we are hoping to accelerate our ambition to be a $1 billion firm from the earlier four years to now three-years,” Sundaresan told Business Standard in a video call.

The investment from TPG, which the company has not disclosed, will allow them to further expand into markets like the UK, Europe and APAC.

Other than geographic expansion, the firm is also eyeing to expand into more verticals. So far, BFSI has been its strong hold but Altimetrik is also expanding its offering in verticals such as insurance, pharma, auto manufacturing, and retail and CPG.

When asked what opportunity TPG brings to Altimetrik, Sundaresan shares that the private equity player has a large portfolio of firms that will be now open for them.

“TPG has an active base of portfolio firms as well as connections in the firms that they have exited from. In total this would mean access to over 300 firms from multiple sectors. That is an opportunity for us,” he added.

Sundaresan added that they are working with TPG on a plan that will allow Altimetrik to tap into these opportunities.

A major chunk of this investment will also be used in India, which has 70-75 per cent of its engineering headcount. Altimetrik’s total headcount is 6,000, of which 5,000 are in its India centres in Bengaluru, Hyderabad, Chennai, Pune, and Delhi.

For Altimetrik, India is both a hub for development as well as market. “If we want to target the $1 billion revenue we will have to double down on India. We will be hiring more,” he said.

Global Capability Centres is also a big opportunity for Alimetrik. “We have already worked with a few organisations. We may start with working with the India team but it also then gives us an entry into their main operations in the US. GCCs is a huge opportunity for us,” said Sundaresan.

 Unlike the Indian IT services area, Altimetrik, according to Sundaresan, has not seen a slump for its services. “The spend on digital business continues to happen. The total addressable market is $650 billion and our serviceable and addressable market is $400 billion and it is growing 17-18 per cent year on year. And this is not a discretionary spend at all,” he added.

On June 27, TPG announced a strategic investment in the company. The investment was being made from TPG Asia Private Equity platform.

First Published: Jul 10 2024 | 7:59 PM IST

Source link

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *