While the full financial terms of the deal were not disclosed, Advent will acquire a minority stake in Tredence, the company said in a statement. Founder and CEO Shub Bhowmick told ET that the deal values Tredence at about $500 million.
The infusion is significant given that a funding winter has engulfed technology startups globally, more so in a sector with few venture backed firms. TPG Capital Asia backed Fractal Analytics and Brighton Park Capital-backed TheMathCompany are among them.
Client concentration in the US market
The majority of homegrown data analytics startups, with data science use cases deployed across the customer experience, and sales and marketing functions, get the lion’s share of their business from the United States. These startups rely heavily on services-based revenues.
Tredence was founded in 2013 by Shub Bhowmick, Sumit Mehra and Shashank Dubey to provide actionable insights to clients across industries with data visualisation, data management, advanced analytics, Big Data and machine learning capabilities.
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Over 80% of Tredence’s revenues are clocked from North America, Bhowmick told ET.
It had previously raised $30 million from private equity firm Chicago Pacific Partners for a minority stake, at a $100 million valuation, ET had reported in December 2020.
Advent’s track record
Other information services investments by Advent, founded in 1984, include NielsenIQ, Sophos Solutions and QuEST Global Services. It has over 390 private equity investments across 41 countries, and as of FY22, had $75.9 billion in assets under management.
Joining Tredence’s board, Advent will pitch in with continued investment in vertical and domain expertise, intellectual property and accelerator repository, channel partner development, and operational excellence, the statement added.
“Advent’s global reach, deep sector expertise, and vast experience in scaling businesses like ours through organic and inorganic growth will be invaluable to us as we look to drive continued business innovation,” Tredence co-founder and CEO Bhowmick said.
An engineer from IIT-BHU, Bhowmick worked at Britannia Industries, Infosys and Mu Sigma before co-founding Tredence. Rival TheMathCompany’s co-founder and CEO Sayandeb Banerjee is also a former employee of MuSigma, and was its cross-border delivery lead.
“Data analytics is an exciting segment within digital IT services, with secular growth. The practice is fuelled by the rise in data created and captured globally, the reduced cost of computing and storage, and the opportunity for enterprises to tap into valuable insights to drive competitive advantage,” said Shweta Jalan, managing partner at Advent International.
Tredence employs over 1,800 employees, with offices in San Jose, Foster City, Chicago, London, Toronto and Bengaluru. Its clients include large companies in the retail, CPG, hi-tech, telecom, healthcare, travel, and industrial sectors. In 2020, it employed 650 staffers, of which 500 were in Bengaluru.
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