Mangaluru: The acquisition of Novigo Solutions by Blackstone-backed R Systems marks the third major buyout of a Mangaluru-headquartered tech firm in recent years, highlighting the coastal city—and neighbouring Udupi—as an emerging hub for technology mergers and acquisitions (M&A) in India.
Deal details
R Systems announced on Thursday that it will acquire Novigo Solutions for an upfront cash payout of ₹400 crore, with additional stock consideration linked to future performance milestones, according to a stock exchange filing. A source familiar with the deal estimated the total transaction value at around ₹950 crore.
Founded by Praveen Kumar Kalbhavi, Mohammed Hanif, Mohammed Jarood, and Shihab Kalandar, Novigo provides low-code/no-code development and intelligent automation services to clients across BFSI, hi-tech, and manufacturing sectors. The company reported ₹264 crore in revenue for the 2024-25 financial year, with an EBITDA margin of 25%, and has a 1,000-strong workforce primarily based in Mangaluru.
Mangaluru-Udupi emerges as M&A hotspot
This deal follows NTT Data’s acquisition of Niveus Solutions in November 2024, another Mangaluru-born firm specialising in Google Cloud Platform services with a 1,000-strong engineer team. The acquisition strengthened NTT Data’s position as one of the largest global system integrators for Google Cloud.
The acquisition streak began in August 2021 when TechnoPro Holdings of Japan acquired Robosoft Technologies in Udupi in a ₹805 crore two-phase deal. Founded in 1996 by Rohith Bhat, Robosoft’s clientele included Apple, Disney, Warner Bros, Paytm, and Heineken, with about 1,000 employees, including 600 in Udupi.
Significance of the acquisitions
The three acquisitions—Robosoft in 2021, Niveus in 2024, and Novigo in 2025—underscore how Mangaluru and Udupi are becoming significant hubs of value creation in India’s tech sector. Each deal was valued over ₹800 crore, placing the coastal belt alongside larger metros in producing companies that attract global strategic buyers.
Conclusion
Novigo Solutions’ acquisition not only reinforces investor confidence in coastal Karnataka’s tech ecosystem but also highlights the growing prominence of smaller cities in India as viable centres for global-scale tech ventures and exits.