Latest news with #WarburgPincus
Bloomberg
4 days ago
- Business
- Bloomberg
Warburg Said in Talks to Team Up With KPS on Gerresheimer
Warburg Pincus is in discussions with KPS Capital Partners about teaming up on an offer for Gerresheimer AG, the German maker of packaging for drugs and cosmetics, according to people familiar with the matter. The private equity firms are considering a bid in the €70s for each Gerresheimer share, said the people, who asked not to be identified as the information is private. KPS is mainly interested in the company's moulded glass operations, the people said.
Mint
4 days ago
- Business
- Mint
Whatfix expects AI products to contribute 20% of revenue as it gears up for IPO
Whatfix, a business-to-business (B2B) software-as-a-service (SaaS) startup, expects its artificial intelligence (AI) products' contribution to revenue to grow at least 13 times, up from its current contribution of 1.5%, within the next 18 months, according to the company's co-founder. 'By the end of calendar year 2026, I expect that AI products will contribute at least 15% to 20% to revenue," Whatfix co-founder and chief executive officer Khadim Batti told Mint in an interview. The company's core business is improving digital adoption of enterprise software through nudges, i.e., tooltips on different parts of a workflow. The intention is to make it easier and more comfortable for users to 'adopt' such software, thereby improving productivity and efficiency. The company has increasingly been focusing on AI as it looks to become profitable within the next two years, the same timeline it has set for itself to make an initial public offering (IPO). 'Currently, we're at -27% Ebitda in 2025. In 2026, alongside growth, we will be at -5% or -6%," Batti said. Also read | Whatfix secures funding from Warburg Pincus, SoftBank at $900 million valuation; eyes IPO in two years But Whatfix's tryst with AI isn't new. In fact, it goes as far back as 2019, when it acquired Airim, a startup that provides AI-powered personalisation for users and customers. 'Combined with Airim's AI-powered personalised engine, Whatfix users can now expect hyper-personalised in-app guidance at their point of need," the company had said in a statement back then. Whatfix last raised funds in September in a $125 million Series E round led by private equity firm Warburg Pincus, with SoftBank Vision Fund 2 also participating. The fresh funds bumped the company's valuation to $900 million. Backers of the company include Dragoneer, Peak XV Partners, Eight Roads and Cisco Investments. Over the past nine months, several startups and companies have been pivoting their AI offerings to become agentic in nature. This technology has emerged as easily monetizable and promises to boost productivity, especially in the enterprise. As a result, investors, too, have been piling on, Mint previously reported. Betting on agents The only thing that's missing with the agentic push across industries is adoption. For context, adoption of agentic AI systems stood at 1% in 2024, according to research firm Gartner. That number is supposed to shoot up to 33% by 2028. The most common complaint from the enterprise has been return on investment. Batti believes that its core product, digital adoption platform (DAP), which accounts for 93% of Whatfix's revenue, will be the game-changer. 'One of the reasons that organizations complain about return on investment on agentic AI systems is because people are not utilising it on a regular basis. Agents are sitting somewhere in the system, and users are trained on one or two use cases. But they don't know that agents can do several other things." Also read | You've heard of LLMs. Prosus is building its own LCM for commercial smarts. The remaining 7% is accounted for by other product verticals, analytics, and Mirror, an application simulation software builder. 'Now we've started a journey where we want to embed AI into each product in our portfolio," he added. Whatfix is working on its own AI agent that can be integrated with existing enterprise software. Agentic AI companies usually develop agents for specific use cases or create a marketplace of agents suited to different tasks. Instead, Whatfix has chosen to use a one-size-fits-all agent that can, in Batti's words, 'perform a task on any software. If our agent is not the default, and something else is, it'll work with those." The rollout for this is planned over the next two to three months. AI focus As part of Whatfix's doubling down on AI, the company created a separate go-to-market division, whose sole job is to find different use cases and find a market for them. Currently, the team has pulled up two use cases, both of which have early adopters already. The first one is an assistant for task automation, while the other is for administrators to 'simplify their job and make them more productive," according to Batti. From September this year, Whatfix plans to have one up and running in beta. By November, it plans to be monetized. But as the company shifts to becoming AI-first, it's but a given that compute costs will rise. But Batti disagrees, saying that with their implementations, there isn't an expectation that people are constantly engaging their platform, but more realistically, between 3-5% of the time. 'I haven't seen a negative hit in terms of our gross margins." As part of its AI push, Whatfix created ScreenSense, a proactive AI-based technology that fits on top of its existing verticals. It crunches several clicks or parts of a workflow into fewer steps, therefore making users more productive. Earlier, Whatfix's DAP would simply guide users from one end of a workflow to another in a step-by-step manner to ensure that users became familiar with using an enterprise application. Simply put, it was reactive. Also read | Cashfree Payments eyes profitability as it focuses on $250-300 million monthly in cross-border payments For example, when a user begins creating a purchase order, ScreenSense is able to detect the intention behind it. Instead of having a user go through the entire workflow to create the order, the technology simply automates the entire process, reducing clicks and time taken. 'In the next 6-12 months, we want to continue to enhance ScreenSense so that it can not only work with our products but also can start working with AI agents or co-pilots, which are built by third parties," said Batti. The hope is that with this, it will not only increase digital adoption of new technologies being introduced by Whatfix's clients into their ecosystems but also boost user productivity. No product left behind Even as Whatfix reworks its own ecosystem to become more AI-heavy, the company says its core offerings won't be phased out but will evolve alongside the new innovation it is planning. On some level, the rationale makes sense. Companies don't change their software stacks overnight. Solutions for customer relationship management and enterprise resource planning are often deployed on such a large scale that overhauling them overnight could be challenging, if not outright disastrous. 'We will definitely continue to increase our investment to become AI-first. But our existing product lines, I would say it will continue in your future. It's not going to discontinue. We are continuing to invest there as well," Batti said. But even with those investments, Whatfix's core products may be running on borrowed time. 'Our core products will fundamentally shift. But it'll take at least five to seven years. That's the mid-term view." For example, with their analytics vertical, instead of generating dashboards for their clients' users, Whatfix now uses natural language processing. Users can opt to simply input what they're looking for, and Whatfix generates it for them.
Mint
6 days ago
- Business
- Mint
Warburg bet on this company three years ago. Now Temasek, ADIA are lining up.
Warburg Pincus-backed Micro Life Sciences Pvt. Ltd is in advanced talks to raise capital from Singapore's Temasek Holdings and the UAE's Abu Dhabi Investment Authority (ADIA) ahead of a planned initial public offering (IPO), three people aware of the development said. 'The current funding round is expected to be around $250-300 million," one of the people cited above said. The company is likely to go public over the next 12-18 months, the second person added. 'The (valuation) ask is around ₹65,000 crore, which is more than 40 times its Ebitda," the third person said, adding the company reported an earnings before interest, tax, depreciation and amortization or Ebitda of around ₹1,300 crore in FY25. All three people spoke on the condition of anonymity. Also read | Temasek-backed Manipal Health eyes a $1 bn IPO, calls banker pitches Temasek, ADIA, and Warburg Pincus declined to comment on Mint's queries, while a response from Micro Life was unavailable until press time. The Vapi, Gujarat-based Bilakhia family founded Micro Life Sciences in 2006. The company has multiple subsidiaries, with the most prominent being Meril Life Sciences. The Bilakhia group, founded by Gafurbhai Bilakhia, is now managed by his three sons, Yunus Bilakhia, Jakir Bilakhia and Anjum Bilakhia. The company operates in healthcare, investment and real estate through its subsidiaries. Individually evaluating 'Investment firms are individually evaluating, and bids are likely to go in next month," the third person added. At a valuation of ₹65,000 crore, Warburg Pincus, which invested $210 million in Micro Life three years ago at a valuation of over $1.8 billion, may be sitting on a fourfold gain in its investment. 'At that value, only a sovereign fund or a state-backed investor can do a deal, given their cost of capital is low," the third person said. Also read | IDFC First Bank to raise ₹7,500 crore from Warburg Pincus, ADIA Meril, a key subsidiary of Micro Life, makes coronary stents, peripheral stents, balloon catheters, and heart valves. Micro Life Sciences reported a total income of ₹3,495 crore in FY24, against ₹2,359 crore in FY23, according to a Care Ratings report dated 8 October, 2024. It reported a profit after tax of ₹333 crore in FY24, against ₹505 crore in FY23. Profit in FY23 included a 'fair value gain of ₹298 crore from the derecognition of JV investment,' Care Ratings said. 'In terms of sales mix, in FY24, Micro earned ~40% of its revenue from cardiac implants (major products: stents, balloon and heart valves), 40% from orthopaedic implants (major products: knee implants, hip implants, and surgical robots) and 10% each from the diagnostic segment and the surgical segment (major products: sutures and mechanical closures)," the note said. The report added that in some segments, the company saw 'stable to marginally higher sales realization", leading to better gross margins. Micro's gross margins improved to 72.80% in FY24 from 64.64% in FY23 on better product mix. Arms in 25 countries The Micro group has subsidiaries in more than 25 countries including Germany, Turkey, the US, Russia, South Africa, Brazil, Bangladesh, Australia, China, and the UK. The company sells its products in over 100 countries directly and through its overseas subsidiaries, with export sales realization being much higher than domestic. Also read | Haldiram's confirms stake sale to IHC, Alpha Wave Global post Temasek deal The Indian medtech ecosystem has seen tremendous investor interest in recent years. In 2024, KKR won a bidding war to acquire Healthium from Apax Partners, while Warburg Pincus invested over $300 million in Appaswamy Associates. Morgan Stanley Private Equity Asia invested ₹1,000 crore in Maiva Pharma, an injectables maker.
Yahoo
24-05-2025
- Business
- Yahoo
AA owners line up banks to steer path towards £4.5bn exit
The owners of the AA, Britain's biggest breakdown recovery service, are lining up bankers to steer a path towards a sale or stock market listing next year which could value the company at well over £4bn. Sky News has learnt that JP Morgan and Rothschild are in pole position to be appointed to conduct a review of the AA's strategic options following a recovery in its financial and operating performance. The AA, which has more than 16 million customers, including 3.3 million individual members, is jointly owned by three private equity firms: Towerbrook Capital Partners, Warburg Pincus and Stonepeak. Insiders said this weekend that any form of corporate transaction involving the AA was not imminent or likely to take place for at least 12 months. They added that there was no fixed timetable and that a deal might not take place until after 2026. Nevertheless, the impending appointment of advisers underlines the renewed confidence its shareholders now have in its prospects, with the business having recorded four consecutive years of customer, revenue and earnings growth. A strategic review of the AA's options is likely to encompass an outright sale, listing on the public markets or the disposal of a further minority stake. Stonepeak invested £450m into the company in a combination of common and preferred equity, in a transaction which completed in July last year. That deal was undertaken at an enterprise valuation - comprising the AA's equity and debt - of approximately £4bn, the shareholders said at the time. Given the company's growth and the valuation at which Stonepeak invested, any future transaction would be unlikely to take place with a price of less than £4.5bn, according to bankers. The AA, which has a large insurance division as well as its roadside recovery operations, remains weighed down by a substantial - albeit declining - debt burden. Its most recent set of financial results disclosed that it had £1.9bn of net debt, which it is gradually paying down as profitability improves. AA owners over the years The company has been through a succession of owners during the last 25 years. In 1999, it was bought by Centrica, the owner of British Gas, for £1.1bn. It was then sold five years later to CVC Capital Partners and Permira, two buyout firms, for £1.75bn, and sat under the corporate umbrella Acromas alongside Saga for a decade. The AA listed on the London Stock Exchange in 2014, but its shares endured a miserable run, being taken private nearly seven years later at little more than 15% of its value on flotation. Under the ownership of Towerbrook and Warburg Pincus, the company embarked on a long-term transformation plan, recruiting a new leadership team in the form of chairman Rick Haythornthwaite - who also chairs NatWest Group - and chief executive Jakob Pfaudler. For many years, the AA styled itself as "Britain's fourth emergency service", competing with fierce rival the RAC for market share in the breakdown recovery sector. Founded in 1905 by a quartet of driving enthusiasts, the AA passed 100,000 members in 1934, before reaching the one million mark in 1950. Last year, it attended 3.5 million breakdowns on Britain's roads, with 2,700 patrols wearing its uniform. The company also operates the largest driving school business in the UK under the AA and BSM brands. In the past, it has explored a sale of its insurance arm, which also has millions of customers, at various points but is not actively doing so now. By recruiting a third major shareholder last, the AA mirrored a deal struck in 2021 by the RAC. The RAC's then owners - CVC Capital Partners and the Singaporean state fund GIC - brought the technology-focused private equity firm, Silver Lake, in as another major investor. A spokesman for the AA declined to comment on Saturday.
Sky News
24-05-2025
- Business
- Sky News
AA owners line up banks to steer path towards £4.5bn exit
The owners of the AA, Britain's biggest breakdown recovery service, are lining up bankers to steer a path towards a sale or stock market listing next year which could value the company at well over £4bn. Sky News has learnt that JP Morgan and Rothschild are in pole position to be appointed to conduct a review of the AA's strategic options following a recovery in its financial and operating performance. The AA, which has more than 16 million customers, including 3.3 million individual members, is jointly owned by three private equity firms: Towerbrook Capital Partners, Warburg Pincus and Stonepeak. Insiders said this weekend that any form of corporate transaction involving the AA was not imminent or likely to take place for at least 12 months. They added that there was no fixed timetable and that a deal might not take place until after 2026. Nevertheless, the impending appointment of advisers underlines the renewed confidence its shareholders now have in its prospects, with the business having recorded four consecutive years of customer, revenue and earnings growth. A strategic review of the AA's options is likely to encompass an outright sale, listing on the public markets or the disposal of a further minority stake. Stonepeak invested £450m into the company in a combination of common and preferred equity, in a transaction which completed in July last year. That deal was undertaken at an enterprise valuation - comprising the AA's equity and debt - of approximately £4bn, the shareholders said at the time. Given the company's growth and the valuation at which Stonepeak invested, any future transaction would be unlikely to take place with a price of less than £4.5bn, according to bankers. The AA, which has a large insurance division as well as its roadside recovery operations, remains weighed down by a substantial - albeit declining - debt burden. Its most recent set of financial results disclosed that it had £1.9bn of net debt, which it is gradually paying down as profitability improves. The company has been through a succession of owners during the last 25 years. In 1999, it was bought by Centrica, the owner of British Gas, for £1.1bn. It was then sold five years later to CVC Capital Partners and Permira, two buyout firms, for £1.75bn, and sat under the corporate umbrella Acromas alongside Saga for a decade. The AA listed on the London Stock Exchange in 2014, but its shares endured a miserable run, being taken private nearly seven years later at little more than 15% of its value on flotation. Under the ownership of Towerbrook and Warburg Pincus, the company embarked on a long-term transformation plan, recruiting a new leadership team in the form of chairman Rick Haythornthwaite - who also chairs NatWest Group - and chief executive Jakob Pfaudler. For many years, the AA styled itself as "Britain's fourth emergency service", competing with fierce rival the RAC for market share in the breakdown recovery sector. Founded in 1905 by a quartet of driving enthusiasts, the AA passed 100,000 members in 1934, before reaching the one million mark in 1950. Last year, it attended 3.5 million breakdowns on Britain's roads, with 2,700 patrols wearing its uniform. The company also operates the largest driving school business in the UK under the AA and BSM brands. In the past, it has explored a sale of its insurance arm, which also has millions of customers, at various points but is not actively doing so now. By recruiting a third major shareholder last, the AA mirrored a deal struck in 2021 by the RAC. The RAC's then owners - CVC Capital Partners and the Singaporean state fund GIC - brought the technology-focused private equity firm, Silver Lake, in as another major investor.
