SBCDC acquires Interra for $7.5 million
Stakeboat Capital-backed IT services firm SBCDC Software Pvt. Ltd, which specializes in niche IT services segments as well as engineering design, has completed its first strategic acquisition, said people in the know.
SBCDC picked up a majority stake in automobilefocussed IT services firm Interra IT, the people said. The deal is likely worth $7.5 million, said one of the people seeking anonymity.
Since its investment in Bengaluru-based SBCDC, the mid market private equity firm had been trying to strengthen the firm’s core businesses via strategic acquisitions.
A Stakeboat spokesperson confirmed the development. “Our vision was to build a toptier platform that offers highend services to businesses in the automobile and healthcare sectors. Interra garners a bulk of its revenue from these sectors, positioning it as a favourable investment. We belive the firm can deliver high doubledigit margin on a steady state basis,” he added.
With a workforce of around 350 employees, Interra offers product engineering, application development, and infrastructure management solutions, catering to automobile, healthcare, and retail sectors. Its has a presence in the US, the UK, and Australia.
The firm had posted consolidated net sales of ₹40 crore in FY22, compared to ₹26 crore a year ago. Interra also turned profitable in FY22, according to VCCEdge, the data intelligence platform of VCCircle.
SBCDC marks Stakeboat’s third investment from its second fund. Other investments include Chennai-based e-publishing services firm, Newgen DigitalWorks Pvt. Ltd, and healthcare startup Sukino Healthcare Solutions.
According to people tracking the development, SBCDC is likely to make 2-3 acquisitions, each with a ticket size of up to ₹100 crore.
India’s information technology sector has been a favourite hunting ground for PE firms in recent years. American buyout giants Blackstone and Carlyle, along with the UK’s Apax Partners and homegrown True North, are among several that have invested in IT companies.
Last October, True North had picked up a minority stake in iLink Digital for $75 million. In June 2023, growth-stage investor A91 Partners backed Chennai-based Kaar Tech.
According to the Stakeboat management, the seven-yearold PE firm has evaluated over 800 companies before making five investments from its first fund, including Leixir Resources, Sankalp Semiconductor, LeadSquared, Ozonetel Communications and Dvara KGFS.
Stakeboat exited Sankalp and Leixir in 2019 and 2021, respectively, and sold a majority stake in LeadSquared the following year.