Transaction:
- Kochi-based Electronics Manufacturing Services (EMS) provider SFO Technologies Pvt Ltd has raised approximately 750 crore ($82 million) in a fresh funding round led by Trident Growth Partners and Amicus Capital Partners.
- The round also saw participation from existing investors Anicut Continuum Equity Fund and HDFC AMC Select AIF FOF-1.
About SFO Technologies:
- Founded in 1990, SFO Technologies is the flagship company of the NeST Group and a vertically integrated EMS provider
- It operates 24 manufacturing facilities, across Kochi, Bengaluru, and Pune, serving sectors such as aerospace, healthcare, energy, communications, industrial, and transportation, with a client base that includes several Fortune 500 companies.
About the Lead Investors:
- Trident Growth Partners: A growth-stage PE firm led by former partners from Premji Invest and IFC. This transaction marks the third investment from its Rs.2,000 crore maiden fund.
- Amicus Capital Partners: A mid-market focused PE firm that targets category-leading businesses in sectors such as specialty manufacturing, healthcare, and technology. Its portfolio includes companies like Aequs and Eka Care.
Rationale:
- SFO will deploy the capital over the next two years to expand capacity, pursue backward integration through components manufacturing, and strengthen its global presence.
- A key strategic focus of this investment is to deepen backward integration, reducing reliance on external supply chains and improving margins
- The funding will support SFO’s ambition to scale from a domestic player into a leading global EMS platform, strengthening its international presence.
- The deal underscores the “China Plus One” strategy and the structural shift in India’s EMS sector towards high-complexity, engineering-led manufacturing (“Develop in India”).
- Beyond capital, the investors bring strategic relationships, operating expertise and global networks to support SFO’s growth and governance.
- For FY25, SFO reported a revenue of Rs. 2,865.5 crore (up 7% YoY) and an EBITDA of Rs. 265.34 crore (up 16% YoY), reflecting steady growth and improving operating performance.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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