CSS Corp Is Looking At IPO In Late 2023 For Its Standalone Business: CEO

Customer experience and technology services provider CSS Corp’s chief executive officer (CEO) Sunil Mittal said the company is looking at an initial public offering (IPO) in late 2023 for its standalone business.

Mittal also said the firm is working with business process management (BPM) company Startek on opportunities where they can add value, but has had no conversations with regard to increasing the minority stake of Startek in CSS.

Whenever a private equity deal happens, there is a fund that gets created. There are multiple investors in that fund. The Startek Investment Fund is an indirect investment into that fund that is managed by Capital Square Partners. From a Startek perspective, I don’t have conversations with them on these aspects. We work at arm’s length distance, (unless there’s an opportunity). The way forward is for us to be independent, continue with the momentum and create value for our investors through an IPO,” he said.

He said the firm plans to go public as a standalone business in late 2023.

Startek’s chief financial officer (CFO) Vikash Sureka had told Business Standard that it expects to increase its minority stake in CSS Corp to give it access to a larger market.

Startek announced a strategic investment worth $30 million in CSS Corp in March. The investment was made in a limited partnership managed by Startek’s majority shareholder, Capital Square Partners.

Mittal, who took over as CEO in May, said CSS is also looking at expanding to new geographies and eyeing acquisitions in areas such as healthcare.

“We have plans to take in 3,000 people and we have already hired 1,800 net positions this year,” said Mittal.

The Texas-headquartered company crossed the 10,000 employee-mark in August, and 6,000 of these employees are based in India.

“Last (financial) year, we grew by 25 per cent, and this year also we will grow more than 25 per cent. Based on the trajectory we’re seeing, we should be able to maintain that momentum for the next few years as well,” Mittal added.

The firm has presence in the US, Costa Rica, Manila, India, Colombia, and will expand to Romania from next month.

Around 80-85 per cent of CSS’ business comes from the technology and telecom sector, while 5-8 per cent is from retail consumer packaged goods. It plans to up its focus on retail consumer-packaged goods and healthcare through acquisitions.

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