Engineering services startup Allygrow raises $20M from Zodius, others
Technology-focused private equity firm Zodius Capital's Zodius Technology Fund has led a $20 million (Rs 128 crore) round of investment in Allygrow Technologies, an engineering services startup floated by former CEO of Mahindra Engineering Services, it said on Tuesday.
IT industry veteran Atul Nishar (who sold his IT firm Hexaware) and Allygrow founder Prashant Kamat are also investing in the company as part of the investment round. Allygrow plans to use the funds to set up its operating infrastructure, build a global team and make strategic acquisitions.
The recently incorporated Allygrow, with headquarters in Pune, will serve industries such as aerospace, automotive, hi-tech, heavy industries, and medical devices amongst others.
Founder Kamat brings over 20 years of new product development and business management experience in the engineering space. As former chief of Mahindra Engineering Services, he had worked extensively on managing operations, business development and cross-border transactions to take the company to generate Rs 250 crore in revenue before it was merged with Tech Mahindra.
Commenting on the investment, Neeraj Bhargava, senior managing director & CEO, Zodius, said, "Our investment will fuel both organic growth and some early acquisitions that the company intends to make in the near future."
Prashant Kamat, founder & CEO, Allygrow Technologies, said, "The Engineering Services space is at an inflection point. It is poised for exponential growth with traditional sectors like automobiles and aerospace moving towards digital platforms, and sectors such as medical devices and next-generation electronics leveraging benefits of the Internet-of-Things revolution."
An IIT Bombay graduate, Kamat left Mahindra in June this year.
Technology-focused private equity firm Zodius Capital Advisors recently raised Rs 700 crore ($110 million) to invest in early-stage internet and technology companies. The investment firm has closed the first tranche of its $500 million fundraising in partnership with Avendus Capital.
Promoted by Neeraj Bhargava, former CEO of business process outsourcing firm WNS Global Services, along with Gautam Patel and Shilpa Kulkarni, Zodius has recently backed Pepperfry and has also invested in firms like Mumbai-based mobile application development and distribution company AppsDaily Solutions Pvt Ltd; online grocery startup BigBasket and Culture Machine Media Pvt Ltd, a startup that creates digital video programmes for 'the internet generation'. Its other portfolio companies include Group FMG, ZyFin, Antuit and Enki Professional among others.
Zodius Technology Fund invests in consumer tech and enterprise software & services startups.