| |DECEMBER 20249TECH MINTAccording to reports, IT engineering services provider L&T Tech Services (LTTS) signed an agreement to acquire Silicon Valley-based Intelliswift for a total consideration of $110 million.Through this acquisition, it aims to expand its offerings across software product development, platform engineering, digital integration, data, and AI.Amit Chadha, CEO and MD, LTTS says, "While declining to give details about the margin impact that the company might face though this acquisition."LTTS will add 1,500 employees, including 1,000 in India. The majority of Intelliswift's revenue comes from North America."Software and AI are becoming essential for the company's clients seeking to bring new products and differentiated solutions for the consumer," says Amit."The acquisition of Intelliswift strengthens our digital and software product engineering capabilities, expands strategic client partnerships with major technology spenders, boosts our presence in Silicon Valley, and advances us towards our $2 billion medium-term goal," adds Amit.Pareekh Jain, chief executive of engineering insight platform EIIRTrend says, "Software product engineering was a missing piece in LTTS services mix. Now LTTS will scale this and it can have a multiplier effect in software driven digital engineering opportunities in other industry verticals." This will jointly give us accounts that can immediately become over $20 million and can then be scaled to $50 millionAmit says, "We had talked about trying to pivot in our growth dimension. We've acquired Intelliswift, which is a $100 million revenue company based in California focused on software product development, platform engineering and AI. Fifty percent of their revenue comes from high tech and of that, 4-5 hyperscalers are their customers. The remaining 50 percent comes from fintech retail, basically doing software product development, and others.""This gives us two or three things. Immediately it adds 100 million to the company. It allows us to deepen the hyperscaler relationship (in three of the hyperscalers we are already present). This will jointly give us accounts that can immediately become over $20 million and can then be scaled to $50 million. Thirdly, it allows us to increase our footprint in digital engineering. At a company level, we aspire to get to $1.5 billion by March 2025, and medium term we should be able to get to $2 billion," adds Amit. Edtech unicorn PhysicsWallah clocked a revenue of Rs.2000 during the fiscal year that concluded on March 31, 2024, but its loss significantly increased.Based in Noida, the edtech company's operating revenue grew from Rs 744 crore in FY23 to Rs 1,940 crore in FY24, indicating a noteworthy 160 percent increase.It is said that its net loss was further surged about 13.5 times, from Rs 84 crore to Rs 1,131 crore, in the previous year due to significant spending on manforce labor expenditure.While the same, the edtech unicorn had a sharp increase in miscellaneous expenses from Rs 170 crore to Rs 1,453 crore.It claims that non-cash costs associated with the revaluation of its preference shares are included in this increase. In fiscal 2024, this resulted in a one-time expense of Rs 756 crore.Currently, it's alleged that the company has revised its financials to reflect a net loss of Rs 84 crore for the year, as it had previously experienced a net profit of Rs 16 crore for FY23.For PhysicsWallah, the main source of funds appears to be garnered coaching sessions, hostel services, server revenues, and associated product sales of study aids, goods, tablets, and panel screens. Based in Noida, the edtech company's operating revenue grew from Rs 744 crore in FY23 to Rs 1,940 crore in FY24, indicating a noteworthy 160 percent increase.The selling of educational services accounted for more than 90 percent of its revenue, with product sales making up the remaining portion.The competitive test preparation market is the edtech company's primary focus. LTTS ACQUIRES INTELLISWIFT FOR $ 110 MILLION EDTECH UNICORN PHYSICSWALLAH CLOCKS RS.2000 REVENUE IN FY24
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