Hexaware Technologies is betting on its recent acquisition Mobiquity to further its capabilities and growth in the banking space amidst softness the sector is facing.
The company acquired the US-based Mobiquity for $182 million in June 2019 for its digital offerings, especially in the banking space. Mobiquity group revenue was $70 million for the year ended December 31, 2018.
This acquisition has helped Hexaware offset the softness in the banking segment in part. The company during its first-quarter results announcement said the banking and financial services space is expected to do worse as clients are cautious.
Apart from the drop in spending, the company also had an issue with one of the clients in its banking portfolio. This will impact the portfolio’s revenue from quarter three through four.
For the second quarter, banking and financial services grew 2 percent sequentially. This is one of the largest revenue generator contributing about 40 percent of the overall revenue.
However, R Srikrishna, CEO, Hexaware, said, barring this one client, the sector is growing and the next two quarters will be better for the company. The company’s financial year is the calendar year.
This growth in part will be aided by the latest acquisition and also growth from its other verticals such as healthcare and insurance and travel and hospitality that saw close to 10 percent growth quarter-on-quarter.
In fact, the growth in the banking vertical was from Mobiquity, whose revenue share from banking is higher than that of Hexaware.
For instance, Mobiquity is working with a banking client in West Asia in creating a bond digital bank. “The entire thing is the new capability for us since we have zero capability historically in this area. Though spends in the banking sector have come down, spends are happening in the digital technology space,” Srikrishna added.
According to Srikrishna, this will help drive growth. In addition, Mobiquity has also done some work in the pharma space. It has developed a digital medicine product, which was recently FDA approved.
As the company is looking to cross-sell Mobiquity’s capabilities, these innovations will come in handy, he pointed out.
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