Goldman Sachs, others invest in digital engineering services provider Infostretch
With new technologies like IoT, new mobility, robotics, and others, the demand for digital product engineering services has grown rapidly. According to research firm IDC, global spending on Digital Transformation Technologies and services is forecasted to grow 10.4% in 2020 to $1.3 trillion. Enter Infostretch, a Silicon Valley tech startup company that provides solutions and services that help enterprises rapidly launch new mobility and IoT initiatives faster.
Yesterday, Infostretch announced that Goldman Sachs Merchant Banking Division and Everstone Group (Everstone) have signed a definitive agreement to acquire a significant stake in the company. The financial terms of the total amount of the investment were not disclosed. Infostretch said it will use the new investment to accelerate its business growth and expand its digital engineering service offerings for both enterprise and digital-native companies.
Founded in 2004 by Manish Mathuria and Rutesh Shah, Infostretch is a pure-play digital engineering services firm focused on helping companies accelerate their digital initiatives from strategy and planning through execution. We leverage deep technical expertise, Agile methodologies, and data-driven intelligence to modernize systems of engagement and simplify human/tech interaction.
“We’re very pleased to partner with Goldman Sachs and Everstone Group to continue our aggressive growth and expansion,” said Rutesh Shah, CEO, and co-founder of Infostretch. “The expertise and reputation we have built over the last fifteen years have put us in the position to advance the digital initiatives of some of the world’s leading companies and brands. This investment will enable us to build on those strengths and take advantage of the growing need for more innovative digital solutions in verticals like healthcare, financial services, and technology.”
According to another research firm Zinnov, the digital engineering services market is expected to reach $687 billion by 2023, a five-year CAGR of 18%. This growth has been fueled by businesses looking for new ways to differentiate products and services, engage with customers in new ways, and streamline operations.
Infostretch has made its mark by helping both enterprises and digital startups accelerate their digital initiatives from strategy and planning through to execution, and its growth has outpaced the growth of the digital engineering service sector as a whole. The company works across the entire software development lifecycle, from strategy through execution and operations, helping companies overcome the biggest technical obstacles in their digital efforts. Its team of 1,200+ global engineers offers core capabilities in cloud, data, IoT, mobile, and UI/UX, leveraging data and analytics in every engagement to speed cycle time, increase efficiency, and reduce risk. With Goldman Sachs Merchant Banking Division and Everstone Group on board, the company can leverage the firms’ relationships, capabilities of their domain-specific operating partners, and their merger & acquisition (M&A) experience, as it looks to continue to grow the business and expand its portfolio of solutions globally. With regard to the M&A, Infostrech plans to be active to strengthen its capabilities in the digital stack.
“We saw an opportunity to invest in a company that has demonstrated an ability to help organizations clearly distinguish themselves via the latest digital technologies,” said Harsh Nanda, a Managing Director in the Goldman Sachs Merchant Banking Division. “Infostretch has built an impressive brand and list of loyal clients in healthcare, financial services, and high tech. Their global presence and ability to apply the latest capabilities in areas like AI and analytics with best practices in Agile and DevOps set them apart in the digital engineering space.”
Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division (MBD) is the primary center for the firm’s long-term principal investing activity. MBD is one of the leading private capital investors in the world with investments across private equity, infrastructure, private debt, growth equity, and real estate.