Kulkarni Inc.’s client, Pune-based tech startup, Websym, closes major deal with Deloitte India, acquires IoT assets Tezeva and FactoryWize

Under the guidance of Kulkarni Inc., a financial advisory and investment banking venture, Websym, a cutting-edge, Pune-based tech startup, has recently closed a robust deal with Deloitte (Deloitte India). The deal revolves around the acquisition of two of Websym’s prime tech assets, Tezeva and FactoryWize, that have come to be known in the tech sphere for their in-demand, superlative IoT (Internet of Things) capabilities. As an advanced connected products platform, Tezeva helps OEMs (original equipment manufacturers) monitor remote assets and products and track their real-time health and performance, while FactoryWize ensures that manufacturers can not only streamline their operations but also increase their profitability and efficiency.

As a part of the deal, in addition to acquiring the IoT products, Deloitte India, gunning to expand its IoT abilities, also absorbed the leadership team and senior experts at Websym so that its extensive experience in the process could be leveraged for a seamless expansion of operations and servicing. This lucrative acquisition attests to not only the premium and industry-geared product development calibre of Websym but also the venture’s eye for talent.

About the acquisition, Parag Kulkarni, President of Kulkarni Inc., said, “At Kulkarni Inc., we take pride in our role as facilitators of the successful acquisition of Websym’s Tezeva and FactoryWize by Deloitte India. This deal signifies the growing momentum in the digital assets and IoT space, reflecting the evolving landscape of technology-driven solutions and their impact on businesses. As we witness this surge in deals, we remain committed to navigating the macro perspective and providing strategic guidance to organisations seeking to capitalise on the opportunities presented by the digital revolution.”On a similar note, Dr Amita Kulkarni, Co-founder of Kulkarni Inc., said, “ It is a matter of pride for us to have handheld Websym to secure this major deal with Deloitte India, our second concluded deal in the last six months.” Speaking about the significance of strategic partnerships and their necessity in the market, she added, “The current macro-level outlook presents immense opportunities for strategic partnerships and acquisitions. It is through such collaborations that companies can harness the power of technology and propel themselves towards growth, transformation, and stay ahead of the competition.”

Expressing their views of the key role Kulkarni Inc. had played in the milestone that the Deloitte deal marks, Ashish Nene, Founder, Websym, said, “When we decided to raise funds for Websym or consider an option to look for a potential strategic buyer, we realised that this would be a fairly intricate and complex process. Over the course of nearly 1.5 years, we found ourselves engaging with two-three potential buyers and faced challenges where we had to carefully weigh our options and make tough choices and also decline some of the offers due to valuation or fitment issues. Having a strategic and financial advisor who possesses a deep understanding of valuation and the mergers and acquisitions (M&A) landscape proved to be crucial in helping us navigate these intricate decisions. Parag provided us with unwavering support throughout the process. His technical expertise and insights played a vital role in helping us make informed decisions that carried significant financial and career implications for numerous individuals, including our employees. Websym concluded a deal with Deloitte India in early 2023, and I would like to thank Parag for all the help and advice provided during our acquisition journey.”

Echoing Nene’s thoughts, Subramhanya Hathwar, Founder of Websym, remarked, “Building an IoT product company requires a combination of visionary thinking, technical expertise, and strategic guidance. While evaluating multiple offers on the table, we focused on potential synergies with acquirers with respect to strategic outlook, market focus, and reach in multiple geographies. Parag and his team helped us immensely in evaluating multiple deal structuring options keeping in mind the need to ensure that the interests of all stakeholders are met. Many a time, they went above and beyond their remit in providing us with innovative ideas that provided us with the insights needed to make informed decisions. Their deep knowledge and advice were instrumental in the choices that we made while finalising the transaction. I would like to thank Parag for his steadfast support, guidance, and assistance through the 18-month period while the deal was concluded.”

Given the technological advancement that the onset of Industry 4.0, the latest chapter of the Industrial Revolution, has ushered in, the financial services industry will have to concentrate more and more on performing evaluations on intangibles such as IoT devices and processes. While such evaluations are emergent tasks in the BFSI sector, Kulkarni Inc. has already successfully led the change and assisted many of its clients in carrying out substantial transactions, deals, mergers, and acquisitions in the nascent domain.

Shedding light on the efforts that Kulkarni Inc. has put in to drive the success of the acquisition of the Websym assets, CA Pushkar Kulkarni, Consultant, Kulkarni Inc., said, “Performing a comprehensive valuation goes far beyond crunching numbers on Excel spreadsheets. It involves delving into various stress scenarios, analysing the competitive landscape, and conducting rigorous research. This deal confirms the inception of a new era for larger IoT and digital asset transactions in the South Asian economy.” Adding to that note, Dr Jagdish, Senior Associate, Kulkarni Inc., observed, “The valuation of IT products and services is very peculiar as it has a flavour of virtual and intangible ingredients. Measuring the worth of the IT assets as well as its potential in the market was a great journey in itself.”

CS Rucha, Associate, Kulkarni Inc., further elaborated on the deal, saying, “Letter of Intent (LOI), internal Memorandum of Understanding (MOU), and the Definitive agreement lay the foundation for a successful deal, requiring careful consideration of legal provisions, risk assessment, and ensuring the interests of all parties involved. Our role was to safeguard the integrity of this transaction and uphold the highest standards of legal advisory.”

For the Websym-Deloitte deal as well, much like all its client servicing processes, Kulkarni Inc. exhibited an unwavering commitment towards offering the highest level of services and advisory. This garnered the Investment Banking company much appreciation from the tech startup. For example, an elated Unmesh Bhathija, Founder of Websym, spoke about the premium serving the company received from Kulkarni Inc., saying, “With the support of our dedicated team and the expertise of Shreedhar, our statutory auditor and Parag, our consultant, we have been able to navigate the complexities of this transaction and ensure adherence to the highest standards of corporate governance. I am thrilled with the successful acquisition of Tezeva and FactoryWize by Deloitte India. This deal not only marks a significant milestone for our company but also highlights the immense growth potential in the IoT industry.”

Similarly, Shripad Shingne, Founder of Websym, stated, “The involvement of our statutory auditors throughout the deal-making process has been invaluable, ensuring transparency, accuracy, and adherence to regulatory requirements. Websym’s dedication to delivering cutting-edge technology solutions combined with robust financial practices has positioned us as a trusted partner in the digital transformation journey.”

CA Shreedhar Pathak, Statutory Auditor, Websym, echoed, “Fair disclosures and honest accounting practices play a crucial role in ensuring the accuracy and reliability of data, which is of utmost importance in deal-making. These practices not only instil confidence in potential investors but also provide a solid foundation for making informed decisions throughout the deal-making process. This deal confirms the credibility brought by audited accounts in finalising the deal.”

Known for its expertise in various financial products, including Equity Valuation, Derivative Valuation, Debt Syndication, Founders Agreement, and Succession Planning, among others, Kulkarni Inc., founded by Harvard Business School alumni, Parag Kulkarni, has, over the last decade, carved its space in the financial services industry. Currently, the company, which began its journey as a research organisation in the sector, boasts a track record of having handled $ 2.3 bn in Debt, Equity, and Hybrid Instruments for several companies across India, Singapore, the USA, and Europe, and is resolved to further its legacy by being a part of many more financial processes of note.

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