Bengaluru-based IT company Happiest Minds Technologies plans to pursue more growth in the Indian region while leveraging its strategic acquisitions and generative artificial intelligence (GenAI) to drive significant growth across its operations, Joseph Anantharaju, executive vice chairman & CEO of product and digital engineering services, told FE.
“India has a relatively larger portion of our business, you know, of 14-15%, and we think that this can actually go up because of the rate at which the Indian market is expected to grow. Especially if you look at some of the verticals that are of interest to us, whether it’s manufacturing or CPG, you know, these are expected to grow,” he added.
Revenue from the India contributed 16.3% to the company’s total revenue in FY24, which is the second highest after the US. Happiest Minds has guided for a 35-40% growth in fiscal year 2025, leveraging recent strategic acquisitions and innovations in GenAI.
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In addition to operational improvements, Happiest Minds has made headlines with its recent acquisitions. While the company clarified that the Macmillan Learning India initiative was more of a team consolidation than a traditional acquisition, the purchases of Pure Software and Aureus have been strategic.
These acquisitions not only broaden the company’s footprint in the BFSI (banking, financial services and insurance) sector but also enhance its capabilities in healthcare and life sciences. “The synergies from these acquisitions not only broaden our capabilities but also open up new markets in banking, financial services, and healthcare, which are significant growth areas for us,” Anantharaju said.
While the company is optimistic about achieving its revenue guidance for FY25, the management stated in the January-March post-earnings press conference that the recent acquisitions will reduce the company’s Ebitda margin or operating margin to a range between 20% and 22% in FY25 from 24.6% reported in FY24.
The IT services company acquired Pure Software for Rs 779 crore in April, which is expected to enhance Happiest Minds’ footprint in the US, the UK and India, along with establishing a near-shore presence in Mexico and offices in Singapore, Malaysia and Africa. The company also acquired a 100% stake in Aureus Tech Systems, a US-based digital product engineering company, for $8.5 million (approximately Rs 71 crore).
Additionally, the company’s growth is driven not just by expansion but also through enhancing efficiency and cutting costs using GenAI technologies.
Sridhar Mantha, president & CEO of generative AI business services at Happiest Minds, said: “Rather than only working with the customers internally, we have identified multiple functions where we can actually leverage and consume GenAI-based solutions so that our overall efficiency also can improve by leveraging GenAI.”
For example, the company has created a GenAI-based solution for the legal team, which has significantly improved their efficiency by quickly navigating through contracts, a practice the company is also extending to its clients.
“We have deployed GenAI solutions internally in functions such as HR and marketing, improving overall efficiency and helping us integrate large teams effectively,” Mantha added.
