Apr 12, 2021

PSG buys majority stake in Nalanda Global

Equity
Acquisitions
SaaS
solutions
Dominic Ellis
2 min
PSG will look to drive Nalanda’s organic growth as well as through strategic M&A activity, after buying a majority stake
PSG will look to drive Nalanda’s organic growth as well as through strategic M&A activity, after buying a majority stake...

PSG has bought a majority stake in Nalanda Global, a leading SaaS company providing supplier risk management software solutions. 

While financial terms were undisclosed, a PSG spokesperson said the stake was "upwards of 80 percent".

Nalanda leverages intelligent cloud software to connect companies and suppliers using a digital platform that enables the smooth exchange and verification of health and safety, due diligence, suppliers validation, invoices and other business information as well as providing solutions to ensure compliance with worker access, working time and e-invoicing legislation. 

Nalanda’s solutions reduce time, cost and risk, as well as facilitating a transparent relationship between both parties.

Founded in 2000 by leading Spanish construction companies FCC, Ferrovial, SICE and Acciona, Nalanda’s international presence currently extends across ten countries including Europe, North and South America. 

Its solutions are used by large companies in sectors including a variety of engineering-related businesses. With a network of over 350 clients and over 45,000 suppliers, Nalanda has one of the largest digital communities of suppliers globally.

With this investment, PSG will look to drive Nalanda’s growth organically, as well as through strategic M&A activity to support the company’s expansion into new industry verticals and geographies, capitalizing on the fragmented supplier management software market.

“Nalanda is a leading digital automation solution operating with a significant addressable market across multiple large sectors,” said Dany Rammal, Managing Director and Head of the PSG Europe team. “We believe Juan Gil Rabadan and the Nalanda team have built an exceptional business, and we’re excited to be working closely with them to support the company’s future development.”

“Not only do we believe Nalanda is well-placed to benefit from the growing adoption of supplier management software solutions, but we plan to support the management team as they develop additional products, further enhancing the value they add to their ecosystem,” added Charlotte Lawrence, Director at PSG.

Nalanda’s Founder and CEO Juan Gil Rabadan, said PSG’s history of partnering with growing software solutions businesses makes PSG the obvious partner to support Nalanda as it enters the next phase of its growth. "We look forward to working with the team at PSG as we build out Nalanda’s product offering and grow into new markets," he said.

The transaction is the eighth platform investment made from PSG Europe, PSG’s debut Europe-focused fund, which held a final close with €1.25 billion in limited third-party partner commitments in February. Other platform investments made by PSG Europe include the acquisitions of Hornetsecurity, Imaweb, MAPAL Group, Nomentia, Signaturit Solutions, SKEEPERS and Sympa.

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Jun 14, 2021

XYZ Reality receives £20m to develop Assisted Reality

AugmentedReality
construction
DigitalTransformation
Technology
Dominic Ellis
3 min
XYZ Reality to use funding led by Octopus Ventures to springboard into USA and automatically report issues through Assisted Reality

XYZ Reality has announced a £20m investment round led by Octopus Ventures.

Founded in 2017, XYZ Reality aims to "revolutionise" the construction sector with its Engineering-Grade Augmented Reality (AR) solution, Holosite.

Designed to enable an on time and on budget delivery of construction projects, by eliminating building errors, HoloSite has been available to select customers through an early access programme and has already been used on projects totalling a value of over £1.5bn in the last year. 

With approximately 98% of construction megaprojects facing cost overruns or delays and 7-11% of project costs being spent on correcting errors, XYZ Reality’s purpose-built integrated AR solution directly addresses these issues.

With its safety certified AR hardhat, cloud platform and in-built proprietary software, Holosite accurately positions high fidelity 3D design models on construction sites, enabling teams to build it right, first time. The technology system has been used on complex construction projects including data centres, pharmaceutical facilities and airports.     

This funding will be used to accelerate the company’s ambition of transforming projects by preparing for HoloSite’s commercial launch in the USA and continuing investment in strengthening research and development. The company is also growing its London team to include key hires across technology, manufacturing, sales and marketing.

David Mitchell, Founder and CEO of XYZ Reality, said developing its engineering-Grade AR solution helping construction teams identify errors in real-time is just the start.

"The next phase is Assisted Reality, where our spatial computing technology will have the intelligence to automatically detect and report issues in the field. And ultimately, the goal is builders building from holograms. Our vision of developing world changing products aligns with Octopus Ventures’ mission of investing in companies that are powering the next industrial revolution. We look forward to building history.”

The latest round of funding is led by Octopus Ventures, one of the largest and most active venture investors in Europe, known for its commitment of investing in companies and founders that are changing the world. Octopus Ventures has a strong track record, spanning investment in health, fintech, consumer, B2B software, and deep tech. This includes WaveOptics, one of Octopus Ventures’ early investments in Augmented Reality, which was recently acquired by Snap Inc. 

Rebecca Hunt, early-stage investor at Octopus Ventures, said: "We’ve always invested in entrepreneurs leading industry change and XYZ is doing just that. It's solving a massive problem that costs the construction industry billions every year, using its Engineering-Grade Augmented Reality solution to spearhead a shift in the sector’s approach. The founding team of David, Umar and Murray have deep domain and technical expertise, which we believe makes XYZ uniquely placed to drive this transformation.”

XYZ Reality also announces a new partnership with Mace, for the construction of a hyper-scale data centre in Europe. With speed to market being particularly essential for mission critical builds, HoloSite’s AR technology will have a significant role in supporting an accurate and time effective build for Mace, which last week appointed Jon McElroy its new Managing Director for International Technology.  

Mace Technical Director, Stephen Henley, said: “Mace has built a reputation of redefining the boundaries of ambition, always bringing efficiency, innovation and responsibility to our projects. With the implementation of XYZ’s groundbreaking AR system, we continue to be committed to delivering projects faster, safer and better than ever before.” 

Five years ago, Heather Bellini of Goldman Sachs Research expected virtual and augmented reality to become an $80 billion market by 2025.

But according to new research by global tech market advisory firm ABI Research, nearly 28 million augmented and mixed reality smart glasses will ship in 2026, while the total global AR/MR market will surpass $175 billion in the same year.

"Major tech players across hardware, software, and services look familiar in the consumer space, contributing to strong and consistent overall growth," says Eric Abbruzzese, Research Director for ABI Research. "Those big tech names, with active investment and product ranging from already available, to announced, to all-but-announced, are creating a consumer AR market that will be dynamic and welcoming rather than struggling and immature."

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