ChrysCapital in cross-border IT play

"Most of the IT companies that ChrysCapital has backed have first had a presence in India and then and looked to build out a strong front end in the US," says Sanjiv Kaul, managing director at the PE firm. "LiquidHub is unique in the sense that it is headquartered in the US and has been looking to build a strong back end in India."

However, LiquidHub - which specializes in helping businesses find IT-related solutions to improve customer and employee engagement - is still typical of the kind of fast-growing IT enterprise ChryCapital likes to back. Accordingly, the GP led a $53 million round of Series B funding for the firm earlier this month. Other investors included PPM American Capital and Credit Suisse.

Kaul explains that deal had been in the pipeline for around three years.

"It is pretty typical that we engage with the promoters at least 2-3 years prior to the investment," he says. "It is something that has put us in good stead and allows us to develop a relationship with promoters prior to the investment and gauge the kind of value-add we can bring to the table."

Set up in 2001, LiquidHub has five offices in the US, including its headquarters in Pennsylvania, and has spent the last 12 months building its presence in India, opening offices in Mumbai and Hyderabad. The business has around 1,400 employees, split equally between the US and India.

The business helps clients assemble and analyze information collected from employees and customers through devices such as smart phones and tablets as well as via remote cloud servers. It currently serves companies in the healthcare, financial services and public sector and its client list includes Vanguard Group, SEI Corp, Novartis, Independence Blue Cross, Subaru and Comcast.

The company claims to have more than doubled its revenue in the last three years, making it one of the fastest-growing firms in the digital transformation space.

According to AVCJ Research, the deal represents ChrysCapital's 13th investment in an IT-related business and it is one of four in its current portfolio. Others include HCL Technologies, KPIT Cummins and Hexaware Technologies.

Kaul explains that the partnership with LiquidHub will be mutually beneficial, with ChrysCapital helping the company strengthen its presence in India.

"That is where the interest in ChyrsCapital was two-fold: we have more than 15 years of investment experience in the IT sector and we are the largest investors in the space," he says. "We expect the LiquidHub will benefit from improved margins as its India operations grow over time."

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• Topics
• Technology
• South Asia
• North America
• Expansion
• Technology
• India
• ChrysCapital Management
• USA
• Growth capital