Motilal Oswal PE to invest Rs 250 crore in product company VVDN

Mumbai: Motilal Oswal Private Equity has agreed to invest Rs 250 crore in Gurugram-based product engineering firm VVDN Technologies which is looking to expand its operations.

Motilal Oswal will be infusing fresh capital into VVDN and will pick up a significant minority stake. With its main offshore delivery centre based in San Jose, California, VVDN is a product design and original design manufacturing services provider. In addition, it has eight centres across India. The money will be invested from the India Business Excellence Fund – III, a fund managed by Motilal Oswal Investment Advisors. JM Financial was the sole advisor to VVDN in this transaction.

Set up in 2007, VVDN has a large customer base including leading global semiconductor companies and large to mid-sized original equipment manufacturers across multiple areas. It has a global sales footprint across the US, Europe, Korea, Japan and India, with nine design and delivery centres employing more than 2,000 engineers. The funds will be used to drive growth, said Bhupender Saharan, cofounder and CEO of VVDN Technologies.

“The funds would be utilised for acquisitions, expansion of manufacturing facility, engineering development labs and demo rooms which will help us serve our customers better, improve our capabilities and create value for all the stakeholders of the company,” Saharan said. According to sources, the company reported revenue of Rs 500 crore, and is growing at around 40-45%.