Warburg Pincus backs Indian IT execs to buy & build BPM biz with $1 bn commitment

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Private equity firm Warburg Pincus is backing three former Genpact Ltd executives to set up a business processing management (BPM) platform called Vivtera, as it continues to ramp up its exposure to India.

The platform will begin by acquiring BPM assets across the globe and may spend up to $1 billion (about Rs 6,700 crore) in a single or multiple deals, Vivtera co-founder and managing partner Mohit Thukral said in a statement.

Apart from Thukral, the two other IT professionals are Gaurav Sethi and Harpeet Duggal. All three were part of GE Capital and Genpact, and worked together for 15 years before deciding to start their own venture.

Thukral said Vivtera will look at acquiring companies that have an enterprise valuation from $300 million to $1 billion. The acquisitions will be underwritten by Warburg Pincus.

The platform will focus on building customer service offering in verticals such as financial services, insurance and technology. It will focus on servicing customers in North America, Europe, Japan and Australia, the company said.

The company is looking to hire executives specialising in digital analytics to build their team and has started preparing a list of possible takeover targets.

Warburg Pincus managing director Viraj Sawhney said there is significant scope for business process transformation services in financial services and fast-growing technology industries. “The Vivtera team has a long and successful track record in building and scaling profitable BPM businesses across global markets,” he said.

Warbug has stepped on the gas in India in the past couple of years, investing in a number of companies including ICICI Lombard General Insurance, Kalyan Jewellers India Ltd, multiplex chain PVR Ltd and logistics company Rivigo Services Pvt. Ltd.

The PE firm has also been funding professionals to build investment platforms in India.

Last year, it said it would invest $300 million in Princeton Growth Ventures, a platform to acquire assets in the telecommunications, media and technology sectors started by former Tata Communications Ltd executive Rangu Salgame.

Warburg also has a joint venture with the Embassy group for developing industrial parks in India.

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