Indian-origin, German-based company Nagarro, a global digital engineering services provider, has set an ambitious goal to become a $10-billion company in the next 10 years or by 2034, with an annual growth rate of 25%.
“Historically, we have grown 20-30% every year. We have gone from $100 million to a billion in roughly 10 years, and we want to achieve the next 10X in the next 10 years. That’s our current mindset,” Manas Fuloria, CEO, Nagarro, told FE. “If you achieve 25% growth over 10 years, you end up very close to $10 billion, and that’s our thinking,” he added.
Nagarro, whose major workforce is based in India, reached the milestone of becoming a $1-billion company in the calendar year 2023. In Q1 of 2024, it reported revenue of 238.3 million euros, a 7.6% q-o-q increase from 221.4 million euros, and a net profit of 16.6 million euros, up from 15.1 million euros in the previous quarter. The company follows the calendar year.
“While the industry may not be out of the woods yet, we think there is some hope for a better scenario in the coming quarters,” Fuloria said.
The demand for Nagarro’s services, particularly in digital engineering, has shown improvement, Fuloria noted. “What we saw was that the general tendency to postpone digital spend and delay the launch of new projects and initiatives is now fading away. We see a lot more activity, travel, and conversations with our clients,” he added.
Nagarro has over 13,000 of its 18,000 employees based in India and plans to hire 1,000 more with focus on senior specialised skill sets rather than entry-level positions. “One notable change is that most of our growth now stems from new projects and new clients, rather than the usual expansion of existing programmes. This shift necessitates specialised skill sets, rather than entry-level individuals,” Fuloria explained.
Despite not having plans to list in India, Nagarro remains committed to expanding. “We have gone from having our centers in a couple of cities to a very hyperlocal approach, setting up hives in every significant town and city across the country,” Fuloria said.