Mphasis aims to be a $10 billion company in the next 3-5 years ⁠— that's twice its current size

• The Indian IT mid-cap, Mphasis, has plans to join the leagues of Tata Consultancy Services (TCS), Infosys, Wipro, and others.
• In an interview with Business Insider, chief executive Nitin Rakesh revealed that the company is likely to go from its current $4 billion market cap to $10 billion within the next three to five years.
• According to him, banking may be the Blackstone-backed firm’s main vertical right now but Mphasis is looking to hi-tech as well as travel and logistics to boost the next phase of its growth.

The Blackstone-backed Indian information technology (IT) player, Mphasis, is looking to enter the big league alongside the likes of Tata Consultancy Services (TCS) and Infosys. And it plans to do so by becoming a $10 billion company in the next three to five years. That means growing faster than the top five IT services companies, at present, in India.




Right now, Mphasis is worth around $4.3 billion. The bulk of the IT mid-cap’s revenue comes from banks, financial services and insurance (BFSI) segment. While this segment will continue to be at the core of the company’s future growth, it’s also looking at other verticals — like hi-tech as well as travel and logistics.


“We have almost doubled the business in the last four years, we can repeat that in the next four,” Mphasis’ Chief Executive Officer (CEO) Nitin Rakesh told Business Insider in an interview.

According to him, as Mphasis accelerates its growth, it will also get the muscle it needs to look at strategic mergers and acquisitions. “We are looking for companies that can bolster our revenue by 4% to 5%,” he said.


Looking for greener pastures when it comes to banking

For Mphasis, the UK is the next big market for banking outside of the US. The segment has grown consistently for six straight quarters for the company. “We moved one of our key leaders from the US to oversee the UK and Europe business,” explained Rakesh.

According to him, clients from the UK and Europe used to account for around 10% of the company’s revenue three years ago. Today, that contribution has grown to 13%.


Banking is only one piece of the puzzle

As Mphasis enters the realm of large-cap IT companies, it doesn’t intend for banking to be its niche. “Travel and logistics vertical has shown 35% to 40% compounded annual growth in the last three years,” said Rakesh.


The hi-tech vertical, which includes medical device companies and businesses that service chip makers, has so far grown to become a $100 million vertical for Mphasis. That’s a 50% jump in the last financial year, which ended March 2021.

Being in the running for hi-tech opportunities doesn’t only mean competing against software companies. According to Rakesh, it also means competing against product engineering companies as well as niche embedded design and software firms. “The skill set there is engineering and design, much more than just software development. It needs a lot of architectural muscle,” he said.

Last month, the US investment management behemoth Blackstone committed $2.8 billion for a majority stake in Mphasis. “Given that the commitment to Blackstone is continuity and acceleration, we definitely expect to be in the segment where we’re market leaders in growth,” said Rakesh.

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