UST Global receives USD 250 million investment from Singapore firm
THIRUVANANTHAPURAM: In a significant boost to the Information Technology space in the state, UST Global, a technology services company started in Thiruvananthapuram, received $250 million investment from Singapore-based Temasek. This is the highest foreign private equity investment ever made in a technology services company in India. The deal involving an undisclosed minority stake-buy would make the valuation of UST Global crossing $1 billion (a unicorn in investment parlance), thereby making it one of the largest privately held technology services company the country has produced.
“The partnership with Temasek will allow us to further our reach so that we can partner our clients in designing their digital impact strategies,” said CEO of UST Global, Sajan Pillai. He said the board would be expanded to give representation to Temasek after the deal and there would not be any change in the management.
Vice-chairman of UST Global Paras Chandaria said part of the investment would go for acquiring Startups, though he did not elaborate on the proportion of the acquisitions. “Partnership with Temasek would be used for co-investment strategies,” he said. The fund infusion is likely to be a blessing for Kerala-based startups as UST Global had announced its plans to invest in startups from the state over the next two years. A Kerala-grown technology company has again come in the radar of global institutional investors after Blackstone bought minority stake in IBS Software for $170 million in 2015. “A few startups in the state have been either acquired or received venture capital by overseas companies. But a growth fund of $250 million showed the maturing of technology companies,” said a technology investment expert.
UST Global was started with 14 people at Thiruvananthapuram in 1999.
The campus in Thiruvananthapuram which is part of Technopark Phase-II continues to be the biggest for the company which has 35 offices across the world. Temasek is a global investment company headquartered in Singapore and has a portfolio of $197 billion.