Motilal Oswal Private Equity (MOPE) has committed Rs 250 crore ($35 million at current exchange rate) to Gurugram-based VVDN Technologies Pvt. Ltd focused on product engineering and electronics manufacturing.
India Business Excellence Fund-III will invest in VVDN, established in 2007 by Bhupender Saharan, Puneet Agarwal, Vivek Bansal and Murali Jayaraman.
MOPE had raised over Rs 2,300 crore ($320 million) for its third sector-agnostic fund, India Business Excellence Fund-III, in October 2018. The fund aims to invest in established mid-market businesses.
The fund’s investments include Gujarat-based MAS Financial Services, a non-bank lender; Mysuru-based family business conglomerate N Ranga Rao & Sons Pvt. Ltd, India's largest maker of incense sticks; and Ludhiana-based Happy Forgings Ltd, one of the largest crankshaft manufacturers in India.
In December 2018, the fund had invested in Indore-based bulk-drugs maker Symbiotec Pharmalab Pvt. Ltd in a consortium with InvAscent.
Talking about the latest acquisition, Vishal Tulsyan, managing director and chief executive of MOPE, said, "Our experience of investing in the electronics product manufacturing space in India has been quite good."
VVDN's customer base includes global semi-conductor companies and large- to mid-sized original equipment makers across multiple areas like 5G, data centre, networking, IoT (Internet of Things), cloud and applications.
With a revenue growth of about 8 times in four years (2014-15 to 2018-19), VVDN has a global sales footprint across the US, Europe, South Korea, Japan and India with nine design/delivery centres employing 2,000 plus engineers, and four manufacturing facilities to service its customers, the company stated.
Saharan, co-founder and chief executive of VVDN, said, "Partnering with MOPE will accelerate VVDN’s growth plans and help the company in scaling the business. Their experience of investing in electronics manufacturing and organisational development in their portfolio companies will add a lot of value to our company.”
JM Financial Services acted as a financial adviser to VVDN for the deal.