Feb 17 2021
Digital technology company TO THE NEW, announced plans to further fuel growth by acquiring companies that complement its strengths and expand presence in the US region.
TO THE NEW’s agility coupled with focus on cloud has helped in acquiring customers across geographies, that include Enterprises, Fortune 500 clients and startups alike. The company has built a strong partner ecosystem with market leaders such as AWS, Adobe and Databricks to help its customers build digital platforms and products.
TO THE NEW has achieved 60% CAGR in the last 3 years with EBITDA margin of over 17%. It is also one of the few companies in the IT/ITeS space with a Dollar retention rate of over 125%. From the current annual revenue run rate of USD 60Mn, the company is aiming to achieve USD 300Mn revenue by FY26, growing 5x in the next five years. Suitable acquisitions will play an important role in this growth ambition and ramp up its US Enterprise clients portfolio.
Deepak Mittal, Co-founder and CEO said, “We have been fortunate enough to have a healthy customer portfolio. From a business perspective, we believe we’ve braved one of the most difficult situations in the recent past rather well. We’re now looking at a Digital Engineering firm based in the US, with local delivery capabilities and scalable enterprise accounts, which will extend our global footprint and foster inorganic growth in FY 2021-22. The ideal revenue base of our potential acquisition can be in the USD 10-20Mn range, while complementing our service offerings as we continue to shape the future of Digital.”
Amit Gupta, CFO, TO THE NEW commented, “Inorganic growth in a key pillar of our strategy for the next five years. We plan to acquire 2-3 US based companies in as many years to complement our existing strengths, multiply topline by cross-selling, and increase US revenue contribution to the business. Our consistently steller financial performance and strong management team enable us to embark on this next big phase of our growth journey.”
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