Homegrown private equity (PE) firm Kedaara Capital has invested an undisclosed amount to pick up a majority stake in GAVS Technologies Ltd, a global IT services provider with a focus on AI-led managed services and digital transformation.
This was Kedaara's second back-to-back deal in a bid to cash in on the rising demand for technology solutions across the world.
Last month, the PE fund bought a majority stake in Great Software Laboratory Pvt Ltd (GS Lab), a digital product engineering services company
GAVS will utilise the capital to deliver AI-led digital transformation services, enterprise managed services, and product engineering to a vast pool of customers globally, especially across healthcare enterprises.
A part of the funding will be also used to drive growth of ZIF.ai (zero incident framework), an AI-based TechOps platform.
Avendus Capital acted as financial advisor to GAVS on the said transaction.
GAVS is said to be primarily catering to clients in healthcare, retail, BFSI and other verticals. The firm claims to have grown its revenue at a stellar rate of over 20% over the last five years, and has partnered with a strong line of global clients in the USA, India, and Middle East.
"Sumit and the senior leadership team have built a robust platform at GAVS, with exceptional capabilities, focus on innovation, and partnerships with world-class clients, especially in the Healthcare sector, " said Sunish Sharma, Co-CEO and Managing Partner of Kedaara, and Parin Mehta, MD at Kedaara.
Since 2010, GAVS has engaged with BronxCare Health System, a leading healthcare provider in New York, to provide AI-led managed IT services and software support. It claims that ZIF.ai resulted in improved IT infrastructure reliability of 99.9% at the hospital and a cost out of almost 30% for BronxCare Health System.
"Kedaara’s investment in GAVS is a testament to the culture of technological innovation, client centricity, and employee engagement that we have instilled in our company. Kedaara has significant experience in scaling businesses while retaining the entrepreneurial ethos in the portfolio companies, " said Sumit Ganguli, CEO at GAVS.
Kedaara has been aggressively investing in technology companies of late. In October, it had led a $75 million funding round in online beauty products marketplace Purplle along with Sequoia Capital and Blume Ventures. Kedaara had also led a Rs 500 crore funding round in Veritas Finance Pvt Ltd, focused on lending to micro, small, medium enterprises (MSMEs).
Kedaara’s aggressive technology bets come at a time when the digital product engineering services is witnessing high growth globally. The National Association of Software and Service Companies (NASSCOM) has pegged India’s engineering R&D sector to grow at a compound annual growth rate (CAGR) of 13% to $65 billion by 2025, up from $31 billion in 2019.