CVC has signed an exclusivity settlement with ValueLabs and negotiations are at the moment underway to finalise the deal, the folks mentioned. ValueLabs was based in 1997 by Arjun Rao Donakanti, who owns 87% of the corporate. The remainder is held by spouse Harini Rao Donakanti. As a part of the transaction, the promoters are anticipated to retain 15-20% possession, whereas the prevailing administration staff will proceed to run the enterprise, the folks mentioned.
Different Contenders
Buyout corporations EQT and world funding main Blackstone had been additionally among the many key contenders vying for the asset. ET first reported on the potential stake sale in October. CVC, a world non-public markets supervisor with investments in non-public fairness, credit score and infrastructure, manages $234 billion in belongings. The Luxembourg-based agency offered its controlling stake in Indian most cancers hospital chain Healthcare World (HCG) in early 2025 to KKR for Rs 3,466 crore ($400 million). In one other notable exit, CVC offered a 67% stake in Indian Premier League franchise Gujarat Titans to the Ahmedabadbased Torrent Group in February final yr, whereas retaining 33%.
ValueLabs gives a broad portfolio of companies, together with software program improvement, digital options, infrastructure engineering, information course of outsourcing, product improvement, automation, AI/ML, and end-to-end digital transformation. The corporate employs over 7,000 professionals in 30 places of work worldwide and serves greater than 300 enterprise shoppers.
In response to the newest out there information, ValueLabs reported a standalone income of Rs 651 crore (Rs 614 crore in FY24) and a internet revenue of Rs 51 crore (Rs 47 crore) in FY25. Its FY24 ebitda declined 16% to Rs 84.9 crore, as per information from Tracxn.
CVC and Donakanti didn’t reply to queries. ValueLabs operates in a extremely aggressive phase that features EXL, UST, Fractal Analytics, Accion Labs and Happiest Minds. The Indian digital and know-how companies area has seen heightened curiosity from world traders amid accelerating enterprise adoption of AI and digital transformation. Fractal Analytics is backed by US-based TPG, whereas Bain Capital owns UST HealthProof, the AI and know-how transformation arm of UST.
Accion Labs — backed by non-public fairness corporations True North and TA Associates — can be at the moment up on the market, with Asia-focused fund PAG rising because the frontrunner. Fast digitalisation throughout industries worldwide is driving demand for cloud companies, information analytics, automation and cybersecurity, increasing the chance set for personal fairness traders.
Reflecting this development, the IT sector’s share of whole non-public fairness and enterprise capital deal worth rose sharply to 35% within the JanuarySeptember 2025 interval, from 23% within the yr earlier, in response to an Equirus Capital report. General PE/VC investments in India climbed to a three-year excessive of $26 billion within the first 9 months of calendar yr 2025, underlining sturdy investor urge for food for digital, SaaS and AI-led enterprise companies.
