India’s Happiest Minds Technologies files for IPO
Indian IT outsourcing company Happiest Minds Technologies, which is backed by J.P. Morgan Asset Management, has filed for an initial public offering.
J.P. Morgan acquired an interest after buying Canaan Partners’ VC portfolio in the country. According to the prospectus, the investor plans to sell its entire 19.43% shareholding. Happiest Minds also plans to issue fresh capital totaling INR1.1 billion ($14.4 million) while co-founder Ashok Soota will sell up to 8.4 million shares. The pricing of the shares will be determined at a later date.
Other investors include individuals and organizations associated with Soota who is also the co-founder of IT outsourcing peer MindTree. Soota launched Happiest Minds in 2011 after leaving Mindtree in the same year. The company seeks to help organizations with their digital transformation needs by partnering with software manufacturers like Microsoft, Amazon Web Services, Salesforce, and McAfee.
A majority of its 157 enterprise customers operate in the education, financial services, and travel sectors. Offshore revenue contributed 77.5% to the total in the most recent financial year. In addition to its workforce in Bengaluru in India, the company has operations in the US, the UK, the Netherlands, Australia, and the Middle East.
For the 12 months ended March, annual revenue increased by 18.6% to INR7.1 billion ($94 million). Net profit for the same period more than trebled to INR605.3 million ($7.9 million). Nearly all of the company's revenue comes from the provision of digital services like artificial intelligence, big data, and robotic process automation solutions. It says that represents the highest proportion among Indian IT outsourcing players.
Other companies operating in the same space in the country include Infosys, Wipro, Tech Mahindra, Tata Consultancy Services, and LTI Infotech. Infosys is the local industry leader.
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