Tech Mahindra to invest `700 cr in products, platforms division in 2 yrs

IT services company Tech Mahindra on Friday said it will invest up to Rs 700 crore in the newly carved out division of products and platforms in the next two years.

The Mahindra group company is already present in the products and platforms business with its acquisition of the telecom sector-focused Comviva and other offerings which are delivering an annual revenue run rate of USD 450 million, company’s chief executive and managing director C P Gurnani said.

“In the next two-three years, we are aiming to take the revenue from products and platforms to USD 1 billion,” he told PTI in a virtual interaction in Pune after making the announcement about the new division at ‘investor day’.

The investment in the new division, to be led by Gurugram-headquartered Comviva’s team, will be Rs 500-700 crore over the next two-and-half years, Gurnani said.

The Comviva team, which also has presence in Bhubaneswar and Bengaluru, has been tasked with leading the entire products and platforms play,he said.

Apart from telecom, Tech M’s products and platforms also extends to the banking, financial services and insurance vertical and other sectors in the enterprise business at present, he said, adding that Comviva’s standalone contribution to the USD 450 million pie will be about USD 200 million.

Company’s president for corporate development Vivek Agarwal said the company will be leveraging on existing customers who will form the first of the clients for the products and platforms offerings, and also the embedded domain knowledge it has earned by working for customers.

He also said the products and platforms play will help expand the margins for the company, which has been aspiring to improve on profitability for some time now.