Magellanic Cloud Looks To Buy 5 Cos With Rs 300-Cr Investment
Eyes strong presence in US, India, Dubai and other geographies, in fields of ITeS, e-surveillance, staffing
Joseph Sudheer Thumma (2nd from right), Global CEO & MD, Magellanic Cloud, during the announcement of expansion plans, in Hyderabad on Monday
Hyderabad: City-based Magellanic Cloud Ltd, a technology enterprise, on Monday announced that the financial year 2026 will be a year of organic and inorganic growth for the company. The company is eyeing 30 – 40 per cent inorganic growth by acquiring about five companies present in various geographies with an investment of over Rs 300 crore.
The company is set to acquire a US-based firm by the end of April 2025, operating in the ERP solution space, and has a topline of about Rs 200 crore. The acquisition of another four to five companies that have a total revenue of about $40 -50 billion will take place in the following financial quarters.
These companies, two in India, one each in the US and Dubai, are operating in the staffing, ITeS, and e-surveillance space.
“The financial years 2024 and 2025 have gone into stabilising the acquisitions and spending on research and development. In FY26, we are going to post a 50 per cent increase in revenue that will come in majorly from the acquisitions that have been lined-up. We acquire only those companies which are strategically aligned with our vision to expand on the lines of geography, technology, and clientele,” Global CEO & Managing Director of Magellanic Cloud, Joseph Sudheer Thumma told the media. The company is likely to close the current fiscal with revenue of Rs 600 crore.
On a query about how the company will fund its acquisition plan, Thumma said that of the Rs200 crore that will go into acquiring a US-based company, Rs100 crore will be pooled in from internal accruals, while the rest will be raised through preferential by next month. The company will be making the payments in tranches over a period of 18 months.
Magellanic Cloud had raised Rs90 crore in 2022 to acquire iVIS, followed by Rs45 crore in 2023. “We will be spending about Rs400 crore -500 crore in FY26 for fulfilling Capex based projects, acquisitions and delivery, of whichmore than Rs300 crore will be set aside for acquisitions. The amount will be raised either through equity or debt,” Thumma added.
