Description

India

Business ID: L#20261210

An opportunity to acquire a fast-growing, founder-led Business Process Outsourcing (BPO) and Customer Experience (CX) company headquartered in India, serving domestic and international clients through a structurally low-cost Tier-2 delivery network.

The company has demonstrated consistent organic growth, increasing revenue from US$1.3 million in FY21 to US$18 million in FY26, achieving a 19.5% revenue CAGR between FY23 and FY26.

Its expanding client portfolio has significantly reduced customer concentration, with the largest client’s contribution declining from 55% to 25% of total billing, while the number of billed clients increased from 18 to 52 over the past three years.

The business benefits from a differentiated operating model, supported by government-backed public-private partnership (PPP) delivery centres, enabling substantially lower occupancy costs, adjusted EBITDA margins of approximately 22%, and a highly capital-efficient operating structure.

Key Investment Highlights

Strong and Consistent Growth

• Revenue increased from US$1.3M in FY21 to US$18M in FY26.

• 19.5% revenue CAGR between FY23 and FY26.

• Five consecutive years of organic revenue growth.

• Profit growth has consistently outpaced revenue growth.

Diversified and Resilient Client Portfolio

• Largest client concentration reduced from 55% to 25%.

• Top three clients account for approximately 58% of revenue, with concentration declining.

• 52 billed clients across multiple industries.

• Core verticals include healthcare, social e-commerce, and banking/financial services, each growing 18–26% annually.

Recurring and Contracted Revenue

• Multi-year contracts across the client portfolio.

• Client retention exceeding 99% over the past six years.

Structural Cost Advantage

• Government-backed PPP delivery centres with nominal rental costs.

• Average rent of approximately US$0.37 per sq. ft., compared with US$1.37 in Tier-1 cities.

• Rental costs approximately 73% below Tier-1 market rates.

• Long-term 5+5-year lease arrangements.

Government Incentives

• Approximately US$1.1M already received under state investment-promotion policies since 2022.

• A further US$1.1M in incentives committed over the next two financial years.

Capital-Light Financial Structure

• Adjusted EBITDA margin of approximately 22%.

• Fixed assets of only US$0.20 per US$1.00 of revenue.

• Total borrowings of approximately US$0.75M.

• Finance costs represent approximately 0.5% of revenue.

• No working-capital debt.

Immediate Capacity for Expansion

• An additional 2,000-seat campus is coming into operation.

• Existing infrastructure provides immediate capacity to consolidate operations and accommodate further growth without significant additional capital investment.

Operational Resilience

• Delivery centres distributed across six Indian states.

• Ability to reroute operations between locations, ensuring business continuity in the event of local disruptions.

International Expansion Potential

• Approximately 95% of current revenue is generated domestically.

• International contracts offer significant upside through higher-margin opportunities using the existing low-cost delivery infrastructure.

• Potential to serve as a ready-made India capability centre for an international strategic buyer.

Expansion into Government Services

• Established e-governance practice supported by multi-year public-sector contracts.

• Eligibility to participate in the majority of tenders within its operating segment.

Operations & Service Offering

The company employs approximately 4,500–4,600 billable professionals, with around 95% working on-site across its delivery centres.

Its core service portfolio includes:

• Customer Experience (CX) and Customer Support.

• Back-Office and Business Process Management.

• E-Governance and Public-Sector Services.

The company operates a proven, human-led and technology-enabled sales platform, having secured more than 30 clients across multiple industries.

Its commercial strategy is evolving towards dedicated industry verticals, with established practices in:

• Healthcare.

• E-commerce.

• Financial Services.

Further expansion is planned into insurance, automotive, travel, and enterprise technology.