Singapore-based operating and investment platform Xcelerate has announced securing over $25 million in a funding round led by US-based investment manager Federated Hermes Private Equity.
The financing was backed by existing institutional investors Altair Capital and Exacta Capital Partners.
Xcelerate offers software solutions and services catering to the governance, risk, and compliance (GRC) and environmental, social, and governance (ESG) requirements of businesses operating across geographies.
The company said it will use the proceeds from the latest round for strategic acquisitions and investments in its operations, team and technology. It plans to expand into the Asia Pacific and other markets in future.
Xcelerate’s filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) show that lead investor Federated Hermes contributed $15 million to the latest round. Meanwhile, returning backers Exacta Capital and Altair invested $4.5 million and $2 million, respectively.
Investors in Xcelerate’s latest funding round
In conjunction with the financing, Federated Hermes partner and Asia-Pacific head Sean Yoo has joined the Xcelerate board of directors.
“As the global regulatory and compliance reporting demands on businesses continue to grow, they are increasingly turning to high-quality providers such as Xcelerate to meet these obligations in the most efficient manner,” said Yoo in a prepared statement.
Xcelerate co-founder Madhujeet Chimni said the investor support will allow the company to “aggressively expand into new segments under the GRC and ESG sectors”.
The company had last announced raising an undisclosed amount in a round backed by Exacta Capital and Altair Capital in 2022. Its ACRA filings showed it had garnered $11 million in the round.
Xcelerate kickstarted its operating and investment platform in November 2021 with a majority stake acquisition in Aparajitha Corporate Services Private Limited, India’s largest social and industrial compliance services provider.
Following the investment by Xcelerate, Aparajitha has acquired the business of Comply India, bought a majority stake in Simpliance Technologies and recently announced an agreement to purchase the labour law compliance services business of Allsec Technologies.