After a Blockbuster Listing, Latent View Analytics Looks To Acquire Small Data Analytics Companies Focused in Europe and US

After a Blockbuster Listing, Latent View Analytics Looks To Acquire Small Data Analytics Companies Focused in Europe and US

Chennai-based data analytics company Latent View Analytics has been the talk of the town after its stellar listing on stock exchanges.

Investors made a profit of over ₹37,000 in three days of listing on investment of ₹14,972.

Rajan Sethuraman, chief executive officer (CEO) of Latent View Analytics has a good justification for the amazing listing gains. “I think the data analytics story played out. But more importantly, I think the story of a fairly strong profitable company did well. We call this the good old-fashioned, profitable growth company. I feel that investor appreciation of digital technology, new age things, plus the appreciation of fundamentals is explaining,” said Sethuraman.

The 15-year old data analytics company is one of its kind in the listed space. It provides services such as data and analytics consulting, business analytics and insights, advanced predictive analytics, data engineering, and digital solutions.

The company intended to raise ₹600 crore through the initial public offering (IPO) listing but received bids for ₹1.12 lakh crore.

“So now that the IPO is done, we are going to be focusing on the opportunities coming in front of us. We have a three-year window in terms of utilizing the IPO proceeds from an acquisition perspective, but we believe that we’ll be able to execute much faster,” said Sethuraman.

As per the red herring prospectus, the company was intended to utilize ₹147 crores from net proceeds to fund inorganic growth opportunities over three calendar years from the date of listing of equity shares.

“We are looking at finding smaller companies, which we can potentially acquire. We want to be very careful and selective there as well. Companies, which are having the right kind of model, approach, one that can bring in some stickiness, either in the form of intellectual property (IP) but also aligned with our interests,” he added.

From a geographic perspective, it is looking for companies that have a good hold of clients in the United States and Europe.

Talking about the revenue growth guidance for the next few years, the company said that, “While the industry reports of 18 to 20% growth rate, our goal and endeavor is better that number, which is what, at least for the current year,” said Rajan Venkatesan, chief financial officer at Latent View.

Latent View started with the business in the Indian market into banking, financial services, and insurance (BFSI) with insurance in specific. Later in 2007, when the financial crisis started it used the opportunity to pivot two ways. One focuses on the US market and later on the West Coast of the United States.

“We didn’t grow significantly during FY19-21 because we were actively reshaping the business. So today, the margin profile is more attractive, we have a better book of work. In the last year alone, we have been able to sign new contracts and build relationships. We are providing services across the data analytics spectrum and not just doing one particular thing,” said Sethuraman.

While the company is already working with some of the large technology companies like Adobe, Uber Technology, and 7-Eleven, it aims to work with as many Fortune 500 companies as possible.