Investcorp To Acquire Digital Services Arm Of NSE For INR 1,000 Cr

Bahrain-based alternative investment firm Investcorp on Monday (April 29) said it has signed an agreement to acquire the digital technology services business of the National Stock Exchange (NSE), NSEIT, for INR 1,000 Cr.

However, the transaction will not include the digital examinations (edtech) business of NSEIT. In a statement, Investcorp said that the deal is part of its strategy to scale up investments in the Indian technology and financial services sectors.

The investment firm also said that the acquisition aligns with its strategy of investing in “deeply entrenched assets and supporting them in their global growth ambitions”.

“We are pleased to announce our acquisition of NSEIT. It is a significant step in our expansion efforts in India and it underscores our commitment to investing in high-growth sectors and backing credible founders and management teams,” said Investcorp’s head of India investment business Gaurav Sharma.

Meanwhile, NSEIT’s managing director and CEO Anantharaman Sreenivasan (Ganesh) said, “This collaboration will enable us to accelerate innovation, drive service excellence, and broaden our capabilities to address the evolving needs of the industry. We thank NSE for its guidance and leadership in enabling NSEIT to achieve a formidable position in India and global markets.”

As per the company, the deal is one of the largest mid-market deals in the country. 

Established in 1999, NSEIT is an enterprise-focussed digital consultancy platform that caters to global customers in capital markets, insurance, and banking sectors. Its offerings span areas such as digital transformation, cybersecurity, cloud services, edtech, data and analytics, artificial intelligence (AI), among others.

With presence across India, North America and the Middle East, NSEIT claims to handle billions of real time transactions for 300+ global businesses. 

Investcorp said that NSEIT is focussed on significant expansion in the US and is looking to shore up its roster of clients in the financial services segment. It also added that the SaaS platform has grown by more than 50% compounded annual growth rate (CAGR) over the last 4 years in the US.

On the other hand, Investcorp is a global alternative investment firm that claims to have more than $52 Bn worth of assets under management (AUM) and has offices in 14 countries including India. It has invested in multiple Indian startups, including Wakefit, Xpressbees, InCred, and Freshtohome. 

India continues to be the breeding ground for startups offering digital transformation solutions for businesses and enterprises. This is largely on the back of high quality and affordable talent available in the country. 

Earlier in the day, it was reported that Bain Capital-backed digital consulting platform Brillio was looking to invest INR 2,000 Cr in India over the next five years. Last year, US-based Cilio Technologies acquired Delhi NCR-based AutomationFactory.AI for an undisclosed amount.

As per a report, the global digital transformation consulting market is projected to soar to a size of $113 Bn by 2027.