Singapore-headquartered digital transformation services provider Relevance Lab has received an undisclosed amount of investment from CSP Fund II, the $700-million technology-focused private equity fund of Capital Square Partners (CSP) and Basil Technology Partners (BTP).
In an announcement, Relevance Lab said the backing of CSP Fund II will allow it to further expand in its focus markets and execute identified M&As.
The investment will also bring CSP Fund II’s Rajeev Srivastava and Sanjay Chakrabarty to the Board of Relevance Lab.
Vasu Sarangapani, the recently appointed president and CEO of Relevance Lab, said the investment will also give the company the opportunity to cross-sell and upsell within the larger CSP Fund II portfolio.
Founded in 2011, Relevance Lab is a specialised technology services company that provides digital transformation and cloud services. Its presence spans India, North America, and Ethiopia, with more than 1,500 global employees.
The investment comes a month after Relevance Lab merged with open-source technologies and cloud firm CIGNEX and engineering major Excellent, giving the company an integrated approach to digital transformation services from its development centres.
CSP Fund II was launched by CSP and BTP in December 2022 to invest in global technology services companies. The fund closed at $700 million in January of this year.
The fund raised capital from HarbourVest Partners, TPG NewQuest, Committed Advisors, and other institutional investors. HarbourVest and TPG NewQuest co-led the deal. HarbourVest led the structuring of the transaction while UBS Private Funds Group advised the transaction.
CSP Fund II will have an eight-year fund life, with an expected exit timeline of 5-7 years for some of its existing assets. When it comes to primary deals, it aims to make another 3-4 investments with ticket sizes going at $25-150 million for control stakes in firms, DealStreetAsia reported earlier.
Some investment themes and sectors include emerging software as a service (SaaS), AI, data analytics, and other digital sub-sectors.
“Our core competency is bringing small- to mid-sized companies together under a unified platform and accelerating growth,” CSP Fund II’s Rajeev Srivastava said.