Over the last year, businesses have been pushed to either go online or perish. The surging of the COVID 19 pandemic has led to a vast increase in demand for online solutions, and companies that help others go online have seen unprecedented growth. Thus, with such a huge shift in trend, everyone wants a piece of this fledgling market. Today, Japan’s IT services firm TechnoPro Holdings has announced that it is set to acquire Udipi-based Robosoft Technologies for ₹805 crores ($108 million).
Robosoft has signed a definitive agreement with TechnoPro Holdings for the sale of a 100% stake in the company. After the transaction, which will be executed in two phases (80% in the first tranche and the remaining 20% in the second one), Robosoft will become a subsidiary of TechnoPro. However, there will be no changes in Robosoft’s current management team, and Robosoft CEO Ravi Teja Bommireddipalli will be elevated to Managing Director and Chief Executive Officer.
The last three years have seen accelerated growth on Robosoft’s part, as it continues to gain major accounts in the US and Japan. Its net sales for FY21 increased by 89% to come at ₹184 crores, while its net income clocked a rise of 170% from ₹18.2 crores for the year ending March 2020 to ₹49.4 crores in FY21.
“Robosoft has had a phenomenal journey over the last two decades and has grown by leaps and bounds during this period. The partnership with Ascent Capital and Kalaari Capital heralded a strong growth era for us and I am very happy that we are handing over the reins of the Company to a global player like TechnoPro,” said Rohith Bhat, Founder & Managing Director of Robosoft.
Founded by Rohith Bhat, the 25-year-old company has come a long way from being a software development firm and is today a leading provider of digital transformation solutions across mobile, web, wearables, and smart TV, for companies, including Apple. It has made good use of emerging technologies such as voice IoT, AR, VR, AI, and ML and currently employs over 1,000 people and has delivery centers in the US and Japan as well. The firm includes prominent names like Ascent Capital and Kalaari Capital among its shareholders, as well as 15 individuals, including promoters and executives of Robosoft.
As for TechnoPro, it is known to specialize in fields such as IT, engineering, and R&D. It has over 20,000 employees and claims to have synergies in the banking and financial services, media, and retail in Japan. The firm said that it looked forward to a close collaboration with Robosoft. “The purpose of the share acquisition is to promote this growth strategy by acquiring the Indian offshore core hub and the capability of technology and solution in a digital field,” it said.
“Partnership with TechnoPro will provide us new opportunities to grow in Japan which is on a path of Digital Transformation while continuing to expand in our core markets of US, Europe, and India. This is a strong validation of Robosoft’s vision and strategy and our strong track record. We will continue to innovate and drive digital transformation for our clients worldwide,” said Ravi Teja Bommireddipalli, Robosoft CEO.
