Zodius Technology Fund has led a $20 million round for investing in Allygrow Technologies, an engineering services company. Along with Zodius, IT industry veteran Atul Nishar and Allygrow founder Prashant Kamat are also investing in the company. 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, India, will serve industries such as aerospace, automotive, hi-tech, heavy industries, and medical devices amongst others. The company is being led by the founder and CEO, Prashant Kamat, who brings over 20 years of new product development and business management experience in the engineering space. As the former CEO of Mahindra Engineering Services, Prashant had worked extensively on managing operations, business development and cross-border transactions to take the company to generating Rs. 250 crores in revenue and attractive profits, and eventually seeing through the company to its sale to Tech Mahindra.
Commenting on the investment, Neeraj Bhargava, Senior Managing Director & CEO, Zodius said, “We are very excited to partner with a business leader of Prashant Kamat’s caliber to set up Allygrow, and build it out as the fastest growing and the most innovative player in engineering services. Our investment will fuel both organic growth and some early acquisitions that the company intends to make in the near future.”
Atul Nishar said, “I see significant opportunities for a new player like Allygrow to make a difference in engineering services industry. We have an excellent management team here. I am confident that Allygrow will be able to add value to its client through disruptive services offerings”.
Prashant Kamat, Founder & CEO, AllygrowTechnologies 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. I am delighted to start this venture with the backing of a savvy investor like Zodius and a seasoned entrepreneur such as Atul Nishar.” Commenting on the approach that Allygrow will take, he added, “We plan to setup the right blend of high-end competencies clubbed with a global operational delivery model. As a philosophy, we strongly believe in the concept of inclusive growth and hence our strategic approach for this venture will pivot on the central theme –”Partnering for growth”. This also reflects in the name of our company, Allygrow Technologies. I look forward to the exciting times ahead.”
Industry estimates show that the Indian Engineering and Research & Development (ERDS) industry has grown by nearly $ 10 billion over the last 5 years, and is expected to double in the next five years. Allygrow will leverage the huge opportunity with its competencies and focus in the engineering services domain. “It plans to invest significantly in applied R&D, developing tools and sub-systems to bolster its capabilities in embedded and connected electronics, both hardware and software.”
About Zodius Technology Fund
Zodius Technology Fund invests in emerging leaders in the Consumer Tech and Enterprise Software & Services markets. The targeted consumer tech business investments would cover both internet and mobile, and areas such as media, commerce and consumer Services. Enterprise Software & Services investments are focused primarily on SMAC (Social, Mobile, Analytics and Cloud) driven IT/BPO opportunities to create new disruptive companies, or restructure and redirect existing companies toward new growth segments. The Fund is also invested in, Bigbasket.com (e-Grocery), AppsDaily (Mobile App Platform), PepperFry (e-Furniture), Culture Machine (Digital Video Media), ZyFin (ETFs), and Antuit (Analytics).