Private equity firm Everstone Group and Goldman Sachs Merchant Banking Division have acquired a significant stake in Infostretch, a leader in digital engineering services. The investment will help accelerate the company’s business growth and expand its digital engineering service offerings for both enterprise and digital native companies, according to a company statement.
Infostretch is a Silicon Valley tech startup company that provides solutions and digital engineering services. These solutions and services aim to help enterprises launch new mobility and IoT initiatives faster.
With new technologies like internet of things, enhanced mobility, robotics, and others, the demand for digital product engineering services has grown rapidly.
Currently, global spending towards digital engineering stands at $293 billion. That amount is expected to reach $667 billion by 2023, according to research from Zinnov. Moreover, this projection will increase future growth in digital engineering and is expected to account for 39% of the overall spend.
The financial terms of the total amount of the investment were not disclosed. However, Infostretch believes that the new investment will provide continued growth and expansion into other markets.
“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,” Shah continued. “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.”
Goldman Sachs and Everstone
With teams of more than 1,200 global engineers, Infostretch works across the entire software development life cycle. Now, with Goldman Sachs and Everstone on the board, the company can leverage the firms’ merger & acquisition experience. Also, the new investment will improve its capabilities in the digital solution 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, Managing Director of the Goldman Sachs Merchant Banking Division.
“Infostretch has built an impressive brand and list of loyal clients in healthcare, financial services, and high tech,” Nanda continued. “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.”
Interestingly enough, Everstone was founded by former Goldman Sachs bankers Sameer Sain and Atul Kapur. The firm manages assets in excess of $5 billion. Everstone’s most notable portfolio companies include Modern Foods, Indostar, OmniActive, and Burger King.
COVID-19 vs. Digital Engineering Services
The coronavirus has emerged as a global crisis, evolving at a rapid speed. No industry is immune to the crisis and digital engineering and other digital transformation (DX) technologies are no exception. Businesses must act now to preserve the integrity of their operations and protect their employees and customers.
At the start of the pandemic, many businesses focused on the safety and well-being of their staff. Equally important, they had to ensure their products or services didn’t put their customers at any health risk.
Therefore, businesses had to digitally engineer their services to offer entirely new solutions or to provide more flexible options that were suitable for their users and employees, according Jeanniey Walden, Chief Innovation and Marketing Officer at DailyPay.
“Healthcare and tech jobs have seen a boom as a surprise to no one,” Walden told The Buttonwood Tree. “Healthcare has increased the need for medical professionals addressing COVID. Additionally, there’s a need to replace those individuals for non-essential procedures, nursing home shortages and so much more.”
Walden said that technology has seen a big uprising in every single industry. With every industry experiencing its own version of digital transformation, businesses can learn a lot from each.
Global Outlook for DX Technologies
Yes, DX technologies are in the spotlight. They are now being implemented to combat the outbreak and potential financial downfall.
Global spending on DX technologies is projected to grow 10.4% in 2020 to $1.3 trillion, according to research from the IDC.
Walden said that there are four key digital transformation technologies to look for over the next few years:
- Working remotely. Remote employees have gone from being the exception to becoming a major part of the workforce. Employers are no longer limited to local candidates. Companies now can easily hire people from all different places and walks of life.
- Contactless technology. Every industry has witnessed its own version of digital transformation that we can learn from. Digital acceleration has taken place in remote telehealth, insurance claim scanning, contactless payments, and more.
- Micro-events. People will not want to gather in crowded events and conferences. So, micro-events and streaming events will allow more personal interaction with people. Large-scale events replaced with opportunistic virtual and smaller experiential events will create tighter relationships, supporting increased connections and persuasion.
- On-demand pay. One of the biggest losers has been traditional paper. On-demand pay has now been pushed to the forefront. Everything from a lack of in-office personnel to actually running paper checks has quickly made paper the enemy.