Allygrow Technologies Pvt Ltd, an engineering services startup floated by Mahindra Engineering Services’ former CEO Prashant Kamat, has acquired Munich–based AE Automotive Elements GmbH, a high end product development firm, and the engineering services arm of Michigan-headquartered Ranal, a specialised manufacturing engineering services firm.
The financial details of the deals were not disclosed.
The acquisitions will add to Allygrow’s capabilities in product and manufacturing engineering domains and help the firm create a comprehensive engineering services portfolio globally, the company said in a statement.
AE Automotive Elements, with its core expertise in the auto domain, specialises in interior and exterior systems and vehicle body-in-white (BIW) development. Allygrow says the acquisition will help the company establish its presence in the European market and strengthen its delivery offerings to Indian and international customers.
AE Automotive Element’s marquee clients include original equipment manufacturers (OEMs) and Tier 1 auto majors such as BMW Group, Daimler, Magna, Yanfeng Visteon amongst others.
As part of the deal, Manfred Weissensteiner, CEO of AE Automotive Elements, will join Allygrow as its chief operating officer.
With Ranal, Allygrow is looking to further build its competency in manufacturing engineering space. Ranal’s major clients include General Motors, Caterpillar, KUKA and Valiant.
“These acquisitions have enabled Allygrow to reach around the $15 million mark in less than six months, manifesting the fast-track growth we are committed to. Our aim is to reach $100 million in revenue over the next four to five years, and gain impetus in areas such as aerospace, medical technology and embedded space,” Prashant Kamat, founder and CEO, Allygrow Technologies said.
He further stated that the company has identified additional targets, between $25 million and $30 million, in the chosen verticals and discussions are in advance stages for the same.
“We have also initiated discussion for funding of the same,” he said.
The Pune-based firm was founded by IIT Bombay alumni Kamat after he left Mahindra in June 2015.
The company then raised $20 million (Rs 128 crore) from technology-focused private equity firm Zodius Capital’s Zodius Technology Fund. Industry veteran Atul Nishar (who sold his IT firm Hexaware) and Kamat himself also participated in the round.
Allygrow focuses on core engineering design, development and manufacturing engineering services for automotive, aerospace, hi-tech, medical devices and heavy industries.