UST Global, a global digital transformation solutions company, has raised $250 Mn from Singapore-based sovereign wealth fund Temasek.
The deal values UST Global more than $1 Bn. The money will be used to fund global expansion and acquisition of players with niche capabilities. The California-headquartered company has offices in Thiruvananthapuram, Singapore, and London.
The company earlier acquired companies such as mobile applications provider Andare and engineering solutions company Kanchi Technologies (based out of Bengaluru).
UST Global also runs an innovation lab called Infinity Labs in many places including Bentonville, Arkansas; Aliso Viejo, California; and Thiruvananthapuram, Kerala. The lab offers its employees hands-on experience in cutting-edge technologies in research and development institutions and startups from around the world.
With this funding, the company is looking to work actively with Kerala-based startups; it is engaged in the groundwork for this project at present.
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“We are bringing in a variety of things, including funding, accelerators, and market presence, to help these companies. This year, you will see a number of efforts. We are looking to focus on sectors like finance, retail, hospitality, and education,” said UST Global CEO Sajan Pillai.
In October 2017, reports had surfaced that UST Global was working on the ‘e-Nagarpalika’ project for the Madhya Pradesh government.
More On The UST Global-Temasek Deal
With this deal, Temasek has acquired a minority stake in UST Global. However, this marks UST Global’s first institutional investment.
Avendus Capital and DBS Bank were the financial advisors on this transaction.
According to Sajan Pillai, as the physical and the digital worlds converge, the current leaders of the physical world seek to adjust to the new digital realities and to new emerging competition.
“UST is perfectly positioned to provide this digital bridge. The partnership with Temasek will allow us to further our reach so that we can partner our clients in designing their digital impact strategies,” he added.
More On UST Global’s Growth So Far
Founded in 1999, UST Global provides digital transformation solutions for Global 1000 companies. It specialises in six next-generation digital services such as design, cybersecurity, mobile, social, analytics, and cloud. It operates in sectors such as healthcare, cybersecurity, talent management, and automated operations.
Powered by the mantra ‘Fewer Clients, More Attention’, the company currently has over 17,000 associates, operating in 25 countries across four continents.
“The latest funding round will help us leapfrog. We are organically registering more than 20% growth and we believe this will help us achieve even higher percentage growth with their access and solutions,” said Sajan Pillai.