Summary
ChrysCapital is refocusing its investments towards B2B enterprise technology, particularly in the SaaS sector, following a successful exit from GeBBS. The firm aims to invest in new-age digital services while selectively targeting profitable consumer tech companies. Their strategic shift reflects the broader market trends favoring innovative technology sectors.
ChrysCapital, a prominent Indian private equity investor, is shifting its investment strategy toward business-to-business (B2B) enterprise technology companies. This decision comes on the heels of successful returns from their previous investments, notably achieving a 6x return from their stake in GeBBS, a healthcare-focused BPO. Akshat Babbar, Managing Director at ChrysCapital, stated, “We are quite actively exploring multiple areas within enterprise tech,” reinforcing the firm’s established expertise in IT services while aiming to capitalize on emerging digital services rather than legacy technologies. The firm is particularly enthusiastic about the software-as-a-service (SaaS) sector, which has seen notable growth in recent years. Having completed their first SaaS deal with a company called ProHance, they are closely observing the expanding ecosystem of SaaS companies originating from India. On the consumer technology front, ChrysCapital seeks high-growth companies nearing profitability, positioning themselves as investors before potential initial public offerings (IPOs). Recently, ChrysCapital divested a controlling stake in GeBBS to EQT Private Capital Asia for an undisclosed amount, though estimates place the deal’s value at approximately $850 million. The investment in GeBBS, which has strategically expanded through acquisitions under the management of ChrysCapital, underscores the firm’s proficiency in navigating the healthcare technology landscape. Babbar emphasized that the healthcare sector remains resilient against automation and AI disruptions, driving significant investor interest in this space. EQT, a competitive bidder in securing GeBBS, views healthcare technology as vital, stating that GeBBS has developed industry-leading solutions to support healthcare providers. With an ongoing commitment to the Indian market, EQT aims to invest substantially in the healthcare sector, aligning with the growth ambitions of acquired companies.
ChrysCapital has a strong track record in private equity investment, particularly within technology sectors. The firm has achieved notable success in its investments, such as a significant return from GeBBS, a healthcare services provider. The global trend of increasing reliance on technology, particularly in the B2B sector, is compelling private equity firms to pivot their focus towards emerging sectors like SaaS. Additionally, healthcare technology continues to attract robust investment interest due to its resilience against external risks such as automation.
ChrysCapital is strategically redirecting its investment focus towards B2B enterprise technology, emphasizing digital services and the SaaS sector. This decision is bolstered by past successes, including a lucrative exit from GeBBS. The company’s approach highlights a growing trend among investors to seek opportunities within high-potential technology solutions while maintaining a keen interest in the healthcare sector’s stability.
Original Source: www.livemint.com
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