National Cybersecurity & Managed Services Platform in India

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  • National Cybersecurity & Managed Services Platform in India
  • National Cybersecurity & Managed Services Platform in India
    National Cybersecurity & Managed Services Platform in India
  • () 38,000,000 $
    259,364,485 ¥
    () 2,660,000 $
    18,155,514 ¥
    ()

    This is a leading cybersecurity and managed services partner (VAR) with a 19-year legacy. The company has successfully evolved from a project-based systems integrator into a recurring-revenue “MSP 3.0” leader, perfectly positioned to capture the high-growth Indian enterprise security market.

    Investment Highlights

    • Established Pedigree: 19-year operating history with a blue-chip base of 500+ enterprise customers across BFSI, manufacturing, and healthcare.
    • Scalable Operations: 24×7 centralized SOC/NOC operations leveraging a cost-efficient India-based delivery model.
    • High-Quality Revenue: Targeting ~60% recurring revenue by FY27E, driven by long-term managed services contracts.
    • AI-Enabled Advantage: Proprietary framework that decouples headcount from revenue growth, materially reducing incident response times.
    • Capital-Light Model: Services-led cash flow profile with minimal capital expenditure requirements.

    Core Operating Engines

    Engine Focus Area Value Proposition
    DTS Digital Transformation Infrastructure modernization and hybrid cloud entry points.
    CNS Cybersecurity & Networking Compliance-driven security and non-discretionary spend.
    MSP 3.0 Managed Services 24×7 SOC/NOC operations delivering high-margin recurring revenue.
    AI Framework Automation Embedded analytics reducing costs and increasing operating leverage.

    Financial Highlights (Management Discussion)

    Project Pi maintains a consistent growth trajectory with significant margin expansion potential through automation and service mix shift.

    Metric FY24A FY25A FY26E FY27E
    Revenue (USD Equiv.) ~ $29M ~ $33M ~ $38M ~ $44M
    Revenue CAGR ~ 15%
    Pure Services GM % 35-40% 35-40% 36-41% 37-42%
    Adj. EBITDA Margin % 6.9% 7.8% 7.0% 7.5%
    Recurring Rev. % 42% 50% 55% 60%

    Strategic Note: The blended gross margin (~13-14%) includes hardware/software pass-through. The core services engine delivers high-value margins aligned with top-tier India IT benchmarks.

    Market Context & Strategic Value

    • Market Tailwinds: The Indian cybersecurity market is projected to reach $3.5-4 Billion by 2025, growing at an 18-20% CAGR.
    • Growth Drivers: Fueled by cloud adoption, regulatory mandates (CERT-In), and rising digital threat exposure.
    • Inorganic Opportunity: Significant “Buy-and-Build” potential in a highly fragmented regional market.
    • Exit Pathway: Clear 3-4 year trajectory toward a strategic exit or sponsor-led IPO.

    Transaction Overview

    • The Deal: Sale of a controlling equity stake to a global strategic or financial partner.
    • Continuity: Founder shareholders will remain post-close with a meaningful equity rollover to ensure leadership continuity and accelerate international growth.

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