Updater Services raises Rs 100Cr from Motilal Oswal Private Equity

Updater Services raises Rs 100Cr from Motilal Oswal Private Equity

Wednesday March 01, 2017,

3 min Read

India Business Excellence Fund–II and India Business Excellence Fund–IIA, funds managed and advised by MOPE (Motilal Oswal Private Equity) Investment Advisors Private Limited, will be investing Rs 100 crore, roughly $15 million, for a minority stake in Chennai-based Updater Services Pvt. Ltd. The company provides integrated business services to clients across the country.

L: Raghunandan Tangirala | R: Vishal Tulsiyan

This is the company's third round of private equity investment, the first two being led by New Vernon Private Equity and ICICI Ventures in 2004 and 2008 respectively. The funds ploughed in by the company will be deployed towards scaling up and expanding to newer geographies. MOPE Investment Advisors Pvt. Ltd. is a subsidiary of MOFSL, Motilal Oswal Financial Services Ltd. Their two growth capital funds, the India Business Excellence Fund (IBEF) and India Business Excellence Fund II (IBEF II) are focused on providing growth capital to mid-market companies, typically in the range of $10-20 million, across sectors.

Established in 1985, UDS is amongst the top five Integrated Facilities Management (IFM) service providers in the country, with operations across India and a particularly strong presence in the south. The company currently caters to more than 700 clients across industries such as IT and ITeS, BFSI and e-commerce, including some of the marquee names in the IT and BFSI industries. They have a significant presence across IFM, P&S (people and staffing) and PSS/IAM (production support services/industrial asset management segments).

Currently, UDS handles clients like the Hyderabad and Bengaluru airports, and, until recently, part of the Delhi’s T3 terminal, where they provide engineering services, cleaning and soft services, besides providing support services at Hyundai Motor India’s car plant, Saint-Gobain Glass India’s plant, and manufacturing support services at Nokia and Foxconn. UDS has also handled the maintenance, security and ticketing, and hospitality of events like the IPL and Formula 1. Clients from the IT/ITeS, banking and financial services, and manufacturing sectors contribute about 70 percent of their revenues.

Speaking about the deal, Raghunandana Tangirala, Founder, CEO, and Managing Director of Updater Services, said, “Partnering with Motilal Oswal Private Equity will help us expand operations and further strengthen our position. MOPE will help us deepen client relationships and offer all integrated business services to our clients. Their experience of managing companies across varied sectors will bring a lot of value to us as we endeavour to build a world-class organisation.”

“We are pleased to be part of what, according to us, is one of the best placed IFM companies in the country. As enterprises continue to emerge in India, the trend of outsourcing of facilities management will increasingly become more accepted. Updater Services is one of the oldest and most well-known brands in the country, with a proven track record of providing quality services,” says Vishal Tulsiyan, Managing Director and CEO of MOPE, adding, “We believe in Raghu and the management he has put together at the company.”

Recently, Raghunandana Tangirala even bought out ICICI Ventures’ 42 percent stake in his company, which the latter had in turn bought out from previous investors New Vernon Private Equity.