Multiples Acquires Controlling Stake in QBurst with $200 Million Investment

Multiples Acquires Controlling Stake in QBurst

In a strategic move poised to reshape the landscape of digital solutions, Multiples Alternate Asset Management has announced the acquisition of a controlling stake in QBurst, a prominent player in digital product engineering. This significant investment, estimated at around $200 million, marks Multiples' largest control investment in the technology services sector to date.

Founded in 2004, QBurst has rapidly positioned itself as a global leader in delivering innovative digital solutions, encompassing a diverse array of services, including Digital Product Development, Enterprise Digitalization, Data Analytics, Cloud Services, AI and Generative AI Services, Automation, DevOps, and Digital Marketing Enablement. With its stronghold spanning across North America, Japan, the Middle East, Europe, and India, QBurst boasts a workforce of over 3,000 dedicated professionals, committed to providing agile, customer-centric solutions.

Renuka Ramnath, the founder and CEO of Multiples, expressed enthusiasm about the potential transformation this partnership could bring. "QBurst, with its incredible journey backed by cutting-edge engineering, has established a unique position in the global market. Our collaboration aims to drive successful transformations for the company, leveraging exceptional talent while strategically investing in emerging technologies. Although Multiples will hold a controlling stake, the founders, Prathapan Sethu, Binu Dasappan, and Ansar Shihabudeen, will retain a meaningful stake, ensuring the continuity of best practices and values that have been intrinsic to the company’s growth. Multiples is keen on advancing its foothold in technology services companies positioned in high-growth areas, and this transaction marks the beginning of many such ventures in the future."

Moreover, Manish Gaur, Managing Director and Head of Enterprise Technology at Multiples, highlighted the uniqueness of QBurst’s approach. "QBurst is distinguished by its end-to-end product development capabilities and customer-centric technical solutions. This investment reflects our targeted focus on technology-driven businesses, mirroring our existing portfolio that includes companies like Quantiphi, PeopleStrong, and MoEngage. Our commitment to the enterprise tech sector is resolute, and we plan to deploy nearly $2 billion within this space over the next five years."

As for QBurst, its co-founder Prathapan Sethu acknowledged the potential of this new partnership. "With a robust focus on innovation and excellence, my co-founders and I have transformed QBurst from its humble beginnings into a global digital engineering powerhouse over the last two decades. Our partnership with Multiples is pivotal for us as we aim for remarkable achievements in the forthcoming years, benefiting from their strategic insights and commitment to our shared values."

The transaction is contingent upon obtaining necessary statutory and regulatory approvals. BDA Partners served as the exclusive financial advisor for QBurst, while Shardul Amarchand Mangaldas & Co. was the legal advisor, with EY acting as the tax advisor. Multiples was represented legally by Anagram Partners, alongside EY overseeing financial and tax scrutiny.

About Multiples Alternate Asset Management

Multiples has carved a niche as India’s leading Alternate Asset Management company, renowned for fostering entrepreneurial ventures. Backing over 30 enterprises, Multiples aids in constructing aspirational, distinctive, and responsible businesses. Identifying opportunities within sectors experiencing significant transformations, Multiples collaborates with exceptional entrepreneurs to propel remarkable growth. Its focus extends to key sectors such as financial services, healthcare, consumer technology, and recently, the green economy.

About QBurst

QBurst stands tall as a global product development and consulting entity, amassing over 20 years of expertise in creating comprehensive digital solutions. The company operates in 21 cities across 11 nations, employing a workforce exceeding 3,000 professionals who serve a vast international clientele. QBurst’s services encompass cloud enablement, AI development, digitalization solutions, and cybersecurity practices, among others. With strategic partnerships alongside industry giants like Microsoft, Amazon, and Google, QBurst continues to enhance its service offerings, gaining recognition as one of the fastest-growing technology companies in India and the Asia Pacific region.

This acquisition signals a major milestone for both Multiples and QBurst, setting the stage for a transformative journey in the evolving tech landscape.