In an interview, co-founder Shashank Dubey said that the company would pursue a smaller deal rather than a bigger deal for its first acquisition.
Bengaluru: Advent International-backed data science and analytics firm Tradence Inc. It is looking to kick-start its inorganic growth plans with its first acquisition this year, said co-founder Shashank Dubey.
In an interview, Dubey said that the company would pursue a smaller deal rather than a larger deal for its first acquisition. He did not disclose the estimated size of the potential deal and how it would be funded.
The Bengaluru and San-Jose based firm counts its three co-founders - Dubey, Sumit Mehra and Shubh Bhowmik - as majority shareholders.
Private equity firm Advent International, which invested in a $175 million Series B funding round last week, and Tradence's Series A investor Chicago Pacific Founders (CPF) also hold board positions as minority stakeholders.
The latest deal, which valued TradeNance at more than $500 million, also saw CPF's stake fall to less than 10% from an earlier high of 20. “They still have a stake in Tradence because they are still betting on us,” Dubey said.
Dubey said, “From here on, we are growing in multiple dimensions, and keeping this in mind, we thought we need a partner with global reach and muscle power for the next 4-5 years. work with us." Explaining the reasoning behind adding Advent as a board member.
In calendar year (CY) 2022, Tradens crossed $100 million in revenue, which it aims to increase to $170 million by the end of 2023. Dubey said the goal is to reach half a billion dollars in revenue by 2026.
The company has focused its inorganic growth strategies around three dimensions.
"There is a geography, which may include acquisition of new markets. Europe is a major focus for this," Dubey said. "The second is industry potential. We are betting heavily on launching banking and insurance, and healthcare and life sciences as industry verticals in CY 2023," he said.
The third dimension, he said, focuses on specific skill sets, particularly data engineering and data science. Tradens aims to open nearby distribution centers, including expanding its presence in Toronto, Canada, and establishing nearby centers in Latin America.
Tradens currently has a team of around 2,000 people, of whom around 80% are in India. By the end of 2023, the company expects to increase the number of employees to 3,000 people.
"This means we are looking to hire around 700 people in India alone and 200-300 people in other geographies," Dubey said.
On plans for a public listing, Dubey said there are no plans for an initial public offering (IPO) as the company would seek to retain its private status to maintain its autonomy, which, he said, would enable growth through experimental means. will play an important role in doing so. projects.
“We are at a stage where we want to build new capabilities, make some bets, and chart a non-linear growth trajectory. We want the freedom and autonomy to do those experiments to take TradeNance to the next level of revenue and profitability," said Dubey, referring to data science at its growth milestone in an industry riddled with rising cost pressures from clients. Reiterating the firm's focus on the high interest rate regime.
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