Paavan Choudary, head of Accordion’s Global Data and Analytics practice and founder of Merilytics
| Photo Credit: By Arrangement
New York-headquartered private equity clients-focused financial consulting firm Accordion has completed integration of Hyderabad-based data analytics company Merilytics and with it opened a new, 1,500 seater office here.
“We have finished our integration and are now fully functional part of the Accordion,” head of Accordion’s Global Data and Analytics practice and founder of Merilytics Paavan Choudary said in an interaction recently at the new office where 850 people work.
Acquisition of Merilytics in May 2023 meant getting access to the data analytics capability in-house for Accordion, which until then used to work with third party D&A vendors on a co-execution or a subcontracting basis. Merilytics, whose headcount was about 550 people at the time of the acquisition, not just brought on board the key capability but years of track record. With the erstwhile Hyderabad entity’s data analytics practice also comprising a private equity (PE) focus, the acquisition paved way for synergies to be struck and access to a much larger platform since Accordion works with many PE firms, he said. Accordion’s headcount is 1400, including the 850 here.
For the U.S. firm, the integration of data analytics capabilities has translated into enhancing its competitive edge in the PE space combining financial and operational expertise for CFOs with cutting-edge analytics. The critical insights are generated through AI/Gen AI, advanced data technologies, value creation analytics, data management and reporting solutions.
A clutch of solutions were launched in 2024 in collaboration with the existing practices of Accordion to go to market from a data analytics perspective, Mr. Choudary said, hinting at the scope for more work from the Hyderabad centre with Accordion launching operations in the U.K in September and evaluating other markets for foray. On plans to ramp up hiring, he said the new office in Hyderabad opened in August as part of a strategy to consolidate operations and all its 1,500 seats will be filled up in 2026.
On the Hyderabad facility’s contribution to Accordion’s revenue, he said it would be in range of 10%-15% with a good part of it happening post the merger last year. The plan is to remain critical to the operations of the parent and emerge as a major player in the Accordion ecosystem.
To queries on factors behind this growth potential and the impact of funding winter, Mr. Choudary said with PE investors sharpening focus on value creation in their portfolio companies data analytics has become more important. “The way people can make more money by exiting is by actually increasing the overall value of the [portfolio] company because you can’t change the debt and equity much with interest rates that are high,” he said. Value creation is now the primary lever for private equity to get returns they need. This applies to portfolio companies too in terms of giving better return to their investors, scenarios where data analytics interventions remain crucial.
EOM
Published – December 23, 2024 05:17 pm IST