Wipro acquires majority stake in Insurtech firm, Aggne Global for $66 million
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Bengaluru, 13 February: IT major Wipro on Tuesday said it will acquire US-based insurtech firm Aggne Global Inc. and its Hyderabad-based affiliate Aggne Global IT Services for $66 million.
The Azim Premji-owned firm will acquire 60 per cent of the company in an all-cash deal, with an option to purchase the remaining stake over a period of time.
"Aggne’s Swift IPs (internet protocol) combined with Wipro’s wider offerings will position us as an end-to-end player in the P&C (property & casualty) insurance space," the company said in an exchange filing.
“Aggne’s unique capabilities will allow us to significantly strengthen our value proposition in a fast-growing part of the insurance sector,” said Ritesh Talapatra, Senior Vice President, Capital Markets and Insurance, Americas 2 Strategic Market Unit of Wipro.
“The Aggne team has a deep and well-established experience in the P&C insurance space. Their unique IP and modular approach to implementations significantly accelerate time-to-market, driving faster business outcomes and better client satisfaction. This, combined with Wipro’s deep relationships and global scale, will help us drive significant synergies and uncover new growth opportunities,” he added.
Aggne offers a wide range of services designed to help insurers transform operations, drive efficiencies, and deliver optimal customer experiences. Its services include IP-led consulting, implementation, and managed services with a strong focus on the Duck Creek platform—a full suite of cloud-based, low-code products that enable P&C insurers to fast-track product development and drive ongoing innovation.
“We are excited about the growth opportunities this new partnership creates for our company and our current and future clients,” said Asha Kalidindi, Co-Founder and CEO of Aggne. “Joining forces with Wipro will allow us to reach a larger and global set of clients and deepen our presence in the insurance sector. Further, Wipro’s commitment to talent development will provide our employees with new growth opportunities. With access to Wipro’s scale and deep technical capabilities, as well as investments in artificial intelligence, we will be able to innovate faster, expand our capabilities and build new ones in alignment with evolving industry needs. We look forward to tapping into the potential ahead of us and driving continued growth for our clients,” she added.
Financial services vertical of all major Indian IT firms is under pressure as financial institutions hold back discretionary spend. During the third quarter ended December, all IT firms posted negative growth in their BFSI vertical.
However, companies like Wipro had indicated last quarter that its consultancy arm Capco was witnessing growth recovery. The IT firm’s acquisition of Aggne is likely to further improve chances of growth recovery in coming quarters.
