The Hillhouse’s offer is expected to prevail over that of Singapore’s sovereign wealth fund Temasek, they said.
“Although the bid sizes are broadly similar, Hillhouse has moved more aggressively and at a faster pace in discussions,” said one of the sources.
The investment, part of the Singapore-headquartered Quest Global’s pre-IPO fundraising, will include a combination of primary capital infusion and secondary share sales by angel investors and high-net-worth individuals (HNIs).
ET first reported in December that Hillhouse had entered the race to acquire a minority stake in the company.
Reverse flip plan
Temasek may also get a small stake through an increase in the deal size, said people with knowledge of the matter. But the final decision on that is still under review, they added.
Founded in 1997 by former GE engineers Ajit Prabhu and Aravind Melligeri, Quest Global serves global clients such as Pratt & Whitney, Rolls-Royce, BMW, Airbus and GE.
Quest Global is also considering a reverse flip, which would involve shifting its parent entity’s domicile from Singapore to India. This will be done through a merger with its Indian arm. The move is aimed at enabling a listing on Indian stock exchanges. Upon completion, the company’s global headquarters will move to Bengaluru, ET reported in September.US private equity firm Carlyle holds a 24% stake in Quest Global, while cofounder Ajit Prabhu owns 42%. Other shareholders include ChrysCapital, True North, Onyx, Ocorian Singapore, JTC Trust and Sanaka Growth, along with angel investors and HNIs.
Hillhouse and Quest Global didn’t respond to queries.
The company has operations in 18 countries, with 93 global delivery centres and about 21,500 employees serving industries such as aerospace, defence, automobiles, energy, medtech, healthcare, rail and semiconductors.
Largest investment in tech space
If concluded, the transaction will mark Hillhouse’s largest investment in India’s technology sector. In 2024, the firm narrowly missed out in a closely contested bid for the BPO company GeBBS Healthcare Solutions, which was eventually acquired by Swedish investor EQT in an $870-million deal. Hillhouse was also among bidders for Chennai- and Texas-based revenue cycle management (RCM) services provider Access Healthcare.
Singapore-headquartered Hillhouse manages over $100 billion in public and private market investments globally. The firm has invested around $1 billion in India since 2010, backing companies such as Swiggy, CarDekho, Cred and ShareChat.
Carlyle first invested in Quest Global in 2003 with a $6 million cheque, exited the company, and returned in 2023. That year, Quest Global was valued at $2 billion when Carlyle, through CA Plume Investments, along with cofounder Ajit Prabhu’s Bequest, acquired the 40% stake held by Advent International, Bain Capital and GIC.
Earlier, in 2021, Quest Global was valued at $1.8 billion when ChrysCapital and True North together bought a sub-5% stake in the company.
Quest Global achieved $1 billion in revenue in FY25.