Netcore acquires 90% stake in Unbxd for $100 mn, plans IPO in a year

Software-as-a-service firm Netcore has acquired 90 per cent stake in artificial intelligence-based product discovery platform Unbxd for USD 100 million to enhance its customer experience technology solutions, a senior company official said on Thursday.

Netcore Cloud group CEO Kalpit Jain told PTI that the company is looking to come up with an Initial Public Offering (IPO) in about a year, and will be filing a draft paper for the same by July or August.

Talking about Unbxd acquisition, Jain said that it is the fourth acquisition for the company in a span of three years.

"Today e-commerce is growing across the globe. Lots of companies want to go digital, and brands are looking to give a personalised experience to their consumers. Unbxd has been doing this for years for a lot of brands in developed countries like the US, UK etc. We have been very strong in India, South East Asia, Middle East and Africa. Unbxd plays a very important role in giving us entry into US and developed countries," he said.

Bootstrapped Netcore will use internal accruals to buy stake from investors in Unbxd, and founders will continue to work at Unbxd. Unbxd has around 150 clients in developed countries, and Netcore will be able to cross-sell its customer management product suite to these clients, Jain said.

Netcore expects to close the current financial year with revenue of around USD 80 million and grow it to around USD 130 million by March 2024.

Jain said the company is looking to grow business in developed countries and push for sales of the entire suite of product portfolio to new-age companies.

The company will continue to look at inorganic expansion for growth, Jain said, adding that the IPO will enhance its brand reputation and help in attracting new talents.

"It will also give a currency to acquire new companies. A listed entity can also use stock as a currency for acquisition," Jain said.

He said that 25 per cent of Netcore is owned by employees, and the IPO will provide them with wealth creation opportunities.