Hexaware Acquires Softcrylic. A Boost for Data & Analytics

Hexaware Acquires Softcrylic To Boost Data Analytics Capabilities

Hexaware Acquires Softcrylic. A Boost for Data & Analytics

In a move that sent ripples through the Indian IT sector, Hexaware Technologies, a leading digital solutions provider headquartered in Mumbai, announced the acquisition of Softcrylic, a well-known data consulting firm based in Minneapolis, USA. 

For an undisclosed sum, this strategic acquisition shows Hexaware’s commitment to maintaining its data and analytics capabilities and adopting the ever-growing demand for data-driven business solutions.

What does this mean for Hexaware?

Hexaware’s leadership team is confident that this acquisition will be a game-changer. Here’s a breakdown of the potential benefits:

  • Improved service portfolio:  The combined entity can offer clients various data and analytics solutions like strategy, implementation, and ongoing management. This one-stop-shop approach will be attractive to businesses seeking an integrated data-driven transformation.
  • Reaching new markets: Softcrylic’s strong presence in the US market opens doors for Hexaware to expand its geographical reach and tap into new client segments. This diversification can mitigate risks associated with overdependence on a single market.
  • Talent acquisition:  The acquisition brings Softcrylic’s team of skilled data professionals, supporting Hexaware’s data science expertise. This talent pool will be crucial for delivering innovative data solutions to their clients.

Future Expectations From This Acquisition.

Founded in 2020 by John Flavin and Bharath Sritharan, Softcrylic may be a young company, but it packs a powerful punch. Here’s what they bring to the table:

  • Deep data expertise: Softcrylic boasts a team of experts with a proven track record in tackling complex data challenges. Their expertise spans the entire data lifecycle, from data capture and validation to data modeling and activation.

  • Marketing technology savvy: Data is the base for understanding and influencing customer behavior in today’s digital world. Softcrylic’s specialization in marketing analytics allows them to leverage data to create targeted marketing campaigns and improve customer journeys.

  • Proven client portfolio: Despite being a young company, Softcrylic has partnered with several renowned brands already, including Adobe, Google, Salesforce, Microsoft Azure, and Amazon AWS. This experience working with large players in the industry strengthens Hexaware’s overall offering.

  • Expansion into new markets: Softcrylic’s presence in the US market opens doors for Hexaware to expand its reach and clientele. Doing so can increase revenue opportunities and a more geographically diverse client base.

  • Focus on innovation: The combined expertise of Hexaware and Softcrylic can pave the way for innovative data-driven solutions. It could lead to new products and services development that meet the evolving needs of businesses in the digital age.

Why does this matter for Investors?

This deal is a compelling opportunity for several reasons for seasoned investors in India, including:

A)The booming data analytics market

Data analytics is no longer a niche. It’s the backbone of modern business strategies. According to a NASSCOM report, the Indian business intelligence and analytics market would reach ₹267 billion (US$3.4 billion) by 2026, reflecting a Compound Annual Growth Rate (CAGR) of 25%. This growing demand for data-driven insights positions Hexaware to capitalize on a significant market opportunity

B)Hexaware’s growth trajectory

Hexaware has been on a steady growth path, reporting revenue of ₹18.5 billion (US$232 million) and a net profit of ₹1.4 billion (US$18.5 million) in the fiscal year ending March 2022. This acquisition further strengthens their portfolio and opens doors to new client segments seeking advanced data solutions.

C)The synergy between the companies

Softcrylic brings a unique blend of data strategy expertise and marketing technology knowledge. They specialize in solving complex data challenges. This expertise will complement Hexaware’s existing digital solutions, allowing them to offer clients a complete suite of services for optimizing marketing campaigns and customer journeys through data-driven insights.

Having been in the tracks of the market for over four decades now, one thing that remains constant is that data is king. Companies that can use the power of information are staying ahead of the curve.

Potential for IPO

There have been whispers about a potential ₹1,000 crore Initial Public Offering (IPO) for Hexaware by the Carlyle Group, valuing the company at ₹4,000 crore. A successful integration of Softcrylic’s capabilities could significantly improve Hexaware’s financial performance, making the IPO even more attractive.

Investor takeaway

This acquisition by Hexaware is a strategic move that positions the company to become a leader in the data analytics space. The growing demand for data-driven solutions, with the combined expertise of both companies, presents a promising outlook for Hexaware’s future growth.

It will be interesting to see how both parties integrate the new company’s expertise into their existing offerings. While the deal’s financial details haven’t been public yet, the success of this acquisition will also depend on the overall cost of ownership for Hexaware.

The current share price of Hexaware Technologies is trading between Rs 500-600. This might soon shoot up because of the acquisition of another young and profitable company, Softcrylic.

In case you are planning on investing your money in Hexaware Technologies, get in touch with Stockify. Being India’s leading online trading platform, you can analyze the share price of Hexaware and many other unlisted shares. Stockify helps you invest in unlisted shares from the comfort of your home. Connect here to gain more.

Table of Contents

Hexaware Technologies’ recent acquisition of Softcrylic is a strategic move to support its data and analytics capabilities. Check out what this means and how it affects the share price of Hexaware Technologies.


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