Silver Lake, Nexus invest in Indian commodity trading platform
Silver Lake Kraftwerk has taken a minority stake in Bangalore-based Eka Software Solutions, a commodity trading and risk management software provider. Existing investor Nexus Venture Partners also participated in the funding round.
This is Silver Lake's first investment in India.
Financial terms of the transaction were not disclosed but The Economic Times reported the round as being worth INR2.5 billion ($40.7 million). Bryce Lee, managing director at Silver Lake Kraftwerk, will join the Eka board. Nexus first invested in Eka in 2009, with a $10 million commitment.
Founded in 2004, Eka's software solutions cover trading and position management, physical supply chains, enterprise risk management and compliance and analytics. Its products cover the agriculture, energy and metals sectors, with customers such as Cargill, EDF, Louis Dreyfus and Agrex. Eka has offices in Asia, Australia, Europe, the US and Canada.
The company started with seed capital of INR43 million from GP Group and has been growing at 35% CAGR over the last five years.
The investment will help the company's R&D and acquisition of new functional capabilities. "We are looking to expand our international presence, bring new product offerings at a faster pace, and acquire more companies," said Manav Garg, Eka founder and CEO.
In April the company acquired EnCompass Technologies, a Canadian energy and commodity trading technology firm.
"This is a strategic investment in the global commodity market where technology is playing an increasingly critical role," said Silver Lake's Lee. "Greater supply chain complexity, increased commodity exposure and volatility, and rising compliance and regulatory controls are driving demand for commodity management support and solutions."
The Silver Lake Kraftwerk strategy provides growth capital to companies in the energy and resource sectors. Last year it invested in friedola Tech, a manufacturer of recycled plastic products with a focus on the automotive and packaging sectors.
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