India's Updater Services gets $15m from Motilal Oswal
Motilal Oswal Private Equity (MOPE) has invested INR1 billion ($15 million) in Indian facilities management company Updater Services.
Updater will use the new capital to expand its operations and strengthen its market position. MOPE will take a minority stake of undisclosed size and help the company deepen its client relationships, offer more business services and improve its management processes.
Since its founding in 1985 Updater has become one of India’s top five integrated facilities management (IFM) service providers. The company has more than 700 clients across India including the Hyderabad and Bangalore airports and facilities owned by Hyundai, Nokia and Foxconn, to whom it provides staffing, production and industrial asset management services along with IFM. It has also handled security, ticketing, hospitality and maintenance at events including Formula One and Indian Premier League cricket.
New Vernon Private Equity acquired a 40% stake in Updater in 2006 for about $10 million but was bought out two years later by ICICI Venture for INR1 billion. ICICI held its stake until 2015, when it fully exited through a buyback by Updater’s promoters, including founder and CEO Raghunandana Tangirala.
About 70% of Updater’s revenue comes from clients in the IT and IT-enabled services, financial services and manufacturing sectors. MOPE said in a statement that given the strong growth of these segments it expects corresponding strong growth from Updater as well.
“Updater Services is one of the oldest and best-known brands in the country with a proven track record of providing quality services” said MOPE’s Managing Director and CEO Vishal Tulsyan. "We believe in Raghu and the management he has put together at the company, and intend to back them in every way we can as they endeavor to build a world class integrated business services organization.”
MOPE made the investment via its second growth capital vehicle, India Business Excellence Fund II. The fund closed in 2013 with INR10 billion and focuses on investments in domestic consumption, financial services, healthcare, manufacturing and infrastructure services.
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