Quest Global: Quest Global may sell up to 6% holding to raise over $200 million – News Air Insight

Mumbai: Quest Global, the Singapore-headquartered engineering services outsourcing company, is preparing a pre-IPO fundraising round at a potential valuation of $3-$3.5 billion, said multiple people aware of the development.

The company is looking to sell 5-6% stake in the round for $200 million-$225 million to a new investor. The transaction will involve both primary shares and secondary sales from angel investors and high-net-worth individuals (HNIs), the people said.

Global investment bank Jefferies is the advisor on the deal, with about 10 non-disclosure agreements already signed, the people said.

Quest Global is simultaneously working on redomiciling its parent from Singapore to India by merging with its Indian arm, a move aimed at facilitating a future listing on the Indian stock exchanges. Once completed, the company’s global headquarters will shift to Bengaluru.

A Quest Global spokesperson did not respond to email queries.

Currently, Carlyle holds 24% stake, while founder Ajit Prabhu owns 42%. Other shareholders include ChrysCapital, True North, Onyx, Ocorian Singapore, JTC Trust, Sanaka Growth, and several angel investors and HNIs. Founded in 1997 by former General Electric engineer Ajit Prabhu and entrepreneur Aravind Melligeri, Quest Global counts Pratt & Whitney, Rolls-Royce, BMW, Airbus, and GE among its marquee clients.The company operates across 17 countries with 83 global delivery centres and a 21,000-strong workforce, serving aerospace and defence, automotive, energy, hi-tech, medtech and healthcare, rail, and semiconductors among industries.Several global firms and startups have pursued “reverse flips” in recent years similar to that planned by Quest Global. The company may seek to raise $1 billion through an IPO at a $5 billion valuation, Bloomberg reported last year. In 2023, Carlyle (CA Plume Investments), along with Ajit Prabhu’s Bequest, acquired the 40% stake held by Advent International, Bain Capital, and GIC, in a deal valuing Quest Global at about $2 billion. Other shortlisted bidders at the time included Apax Partners and TA Associates.

Carlyle had first invested in Quest back in 2003 with $6 million but exited later, before re-entering in 2023. In 2021, Quest was valued at $1.8 billion, when ChrysCapital and True North together bought under 5% in the company.

Quest Global reported revenue of $877 million in FY24 (up 18%), an Ebitda of $66 million (up 15%), and net profit of $27.5 million (up 7%), according to Tracxn data.

The global engineering services outsourcing (ESO) market, estimated at $315 billion in 2025, is projected to expand to $579 billion by 2030, growing 12.8% compounded annually, as per Mordor Intelligence.

Industry experts note that shorter product cycles, AI-driven design tools, and geopolitical uncertainties are accelerating outsourcing, with providers like Quest evolving into strategic R&D partners for OEMs.

Asia-Pacific, led by India, China, and Southeast Asia remains the fastest-growing ESO hub, driven by a vast engineering talent base and strong cost advantages.