Donakanti family plans to sell ValueLabs at valuation of $1 B

Mumbai: Promoters of Hyderabad-based ValueLabs, a technology services and AI solutions firm, are looking to sell the entire business at a valuation of $1 billion (about ₹8,880 crore).The Donakanti family, which owns the company, has engaged Goldman Sachs to identify potential buyers, said multiple people familiar with the matter.

Several global private equity buyout funds have been approached, and bids are expected by mid-October, sources said.

Founder Arjun Rao Donakanti owns 87% of ValueLabs, with his wife Harini Rao Donakanti holding the remainder.


With more than 7,000 professionals and more than 30 offices worldwide, ValueLabs serves over 300 enterprise clients currently. According to the latest available data, the company posted ₹614 crore in revenue in FY24, posting a 2% growth. However, Ebitda declined by 16% to ₹84.9 crore, and net profit fell 19% to ₹46.7 crore, as per data from Tracxn. Arjun Rao Donakanti didn't respond to an email sent last week.

"The combination of founder-led companies, under-penetration in global markets, and potential for consolidation creates a promising environment for private equity investments," said a Mumbai-based PE fund manager. "Additionally, the recurring revenues and long-term contracts typical in tech services provide financial stability that is highly attractive to investors seeking predictable returns."

Founded in 1997, ValueLabs offers various services including software development, digital solutions, infrastructure engineering, knowledge process outsourcing, product development, digital enablement, automation, AI/ML, and digital transformation.

It competes with major firms like EXL, UST, Fractal Analytics, Accion Labs, and Happiest Minds. Notably, Accion Labs-backed by PE funds True North and TA Associates-is also on the block. The potential deal has drawn interest from several buyers including PAG and Apax Partners with an estimated valuation of $800 million to $1 billion, ET first reported on August 22.