Homegrown PE Firm ChrysCapital Strengthens IT Portfolio, Acquires Xoriant

Homegrown private equity firm ChrysCapital has acquired Silicon Valley-headquartered technology services firm Xoriant for an undisclosed amount. 

With the deal, Xoriant aims to accelerate value creation for its stakeholders and ramp up global growth. The acquisition is expected to enable the firm to leverage ChrysCapital’s large resource base to build relationships with large clients. 

On the other hand, the move will allow the PE firm to diversify its investments in the overarching IT servicing and software engineering space. This is ChrysCapital’s ninth business services buyout till date and the second one out of its ninth fund. 

“… I am excited to team up with Sanjay Jalona and ChrysCapital for the next phase of this journey and benefit from their vast experience in building large client relationships with successful global growth. I look forward to the opportunity to accelerate value creation for all our stakeholders,” said Xoriant CEO and founder Girish Gaitonde. 

Echoing the sentiment, ChrysCapital Director Akshat Babbar said, “…Given our experience in the space, we are confident of the value addition that ChrysCapital would bring to Xoriant in this journey. We are committed to building further on the company’s attractive client set, long-standing relationships, domain and service-line expertise as well as digital IT offerings.”

Sidley Austin served as the legal counsel for ChrysCapital, while EY served as the financial and tax advisor. On the other hand, Arnold and Porter was the legal counsel for Xoriant, while Avendus Capital was the exclusive financial advisor.

Founded in 1990, Xoriant offers a range of IT products across areas such as healthcare, manufacturing, retail and telecommunications. With offices in Asia, Europe and the US, Xoriant caters to clients from startups as well as Fortune 100 companies. 

On the other hand, the ChrysCapital group was founded in 1999 as one of the country’s earliest PE franchises. The firm manages more than $5 Bn in investments across nine funds and has exited companies such as HCL Technologies, Infosys and LTIMindtree. 

The acquisition comes right after the PE firm closed its $1.4 Bn ninth fund last year. The firm claims to have so far realised $6.5 Bn from more than 75 exits in India. 

Amid the funding winter in the Indian startup ecosystem, the year 2022 saw the emergence of interesting trends in the private equity space. As per Inc42, 5 major PE funds raised $2.5 Bn last year, focusing largely on growth-stage and late-stage startups. With the PE firms sitting on large amounts of dry powder, 2023 could see private equity firms scale deployment of funds across sectors.