99x received an investment of USD 20 million for its next phase of planned growth. The investment is a part of its capital restructuring program.
The funds were through an investment from Herkules Deal-by-Deal, a Scandinavian private equity company. The investment entails setting up a holding company in Europe, funds for future acquisitions, and cash remuneration for part of the shares held by the current shareholders.
The new investment paves the way for the company to establish a direct presence in Europe and an acquisition-based growth trajectory, enabling the company to broaden its digital service offerings. The plan is forecast to result in doubling revenue and an increase in employment beyond 500 people in Sri Lanka over the next few years. Last year, the company engaged the services of Capital Alliance (CAL) in Sri Lanka to prepare the necessary collateral to reach out to potential investors.
99x then secured an investment from Herkules Deal-by-Deal, a reputable private equity firm in Scandinavia. Herkules secured financing from 22 high net-worth individuals in a short period. Founder and CEO, 99x, Mano Sekaram said, “We began this journey to seek investments to establish a direct presence in the Scandinavian region and position ourselves for an acquisition led growth strategy.
Partner at Herkules, Fredrik Bysveen said, “99x’s high customer satisfaction, strong financial performance and the competence of its people was a key attraction for us to invest in 99x’s next phase of growth.”