Renuka Ramnath’s Multiples just bet $200 mn on QBurst for a controlling stake

The acquisition of QBurst marks the beginning of such large-scale transactions for Multiples, founder, managing director, and CEO Renuka Ramnath said in a statement. While it is unclear exactly how much of a stake Multiples PE has in the software company, founders Prathapan Sethu, Binu Dasappan and Ansar Shihabudeen are expected to continue to stay on.

Founded in 2004 by the trio, QBurst develops digital solutions across the spectrum, from digital marketing for companies to cloud consulting services and even data analytics, artificial intelligence and machine learning. The company currently has over 3,000 employees spread over 21 cities in 11 countries.

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QBurst’s aggressive focus on AI-led innovation makes it well-suited to Mulitples’ creation thesis. “Companies that are able to leverage AI in their value chain and enhance experience, productivity and their competitive edge will ultimately capture a much larger share of the available profit pool,” Multiples’ managing director and head of enterprise technology Manish Gaur said.

Strategy shift

In fact, the PE firm is shifting strategy to focus on the enterprise tech sector, where it plans to invest “nearly $2 billion in the space over the next five years, he added.

Multiples is evaluating what it calls “high-growth opportunities” across technology services and software-as-a-service companies, particularly those that play in the India-US corridor. “We are also keen on backing vertical-centric differentiated business process outsourcing plays in specific areas such as healthcare and financial services,” Gaur said.

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The Mumbai-based PE firm is expected to launch a $300-400 million continuation fund sometime this month, Mint had reported in January. This is being done to continue support to three of the firm’s investments, namely Vastu Housing Finance, APAC Financial Services Pvt Ltd and Quantiphi. Its previous fund, Fund IV, was closed in 2023 at $640 million.

But even as the landscape for technology startups changes, thanks to China’s DeepSeek, the firm isn’t worried. “Irrespective of cycles, we have seen valuations continue to be high for good companies that have the ingredients to deliver outsized returns,” Gaur said.

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Multiples, with nearly $3 billion in assets under management, invests in sectors like financial services, consumer technology, enterprise technology as well as pharma and healthcare. The PE firm has invested in over 30 companies and made 16 exits since it began its journey in 2009. Multiples has invested in companies like Acko, Delhivery, Licious, Dream Sports, PVR and India Energy Exchange.