Tech Mahindra through its wholly owned subsidiary Tech Mahindra Consulting Group is acquiring a majority stake in Canada-based Avant Techno Solutions, signalling a calibrated shift towards domain-led transformation in the high-value BFSI segment.
At a time when global financial institutions are re-architecting core systems amid regulatory change and digital disruption, the move positions Tech Mahindra closer to next-generation banking infrastructure, particularly in payments modernisation and wealth platforms.
Beyond scale to specialisation
The acquisition reflects Tech Mahindra’s intent to deepen its presence in BFSI, a vertical where domain expertise increasingly determines deal size and longevity. While the company has built scale in telecom and enterprise services, Avant strengthens its capability in specialised areas such as real-time payments, ISO 20022 migration and core banking transformation.
This marks a shift from execution-led outsourcing to consultative, transformation-led engagements, enabling the company to participate in larger, multi-year programmes.
Strengthening North America presence
North America remains the most lucrative market for IT services, especially in BFSI. Avant’s established client relationships and regional presence offer Tech Mahindra faster access and improved credibility in this competitive market.
This is not merely about client addition, but about enhancing positioning in a segment where regulatory understanding and domain depth are critical.
Aligning with AI-led transformation
The deal also aligns with Tech Mahindra’s broader push towards AI-led services. As financial institutions increasingly adopt data-driven and automated systems, the integration of payments, cloud and AI capabilities becomes essential.
Avant’s emerging strengths in these areas complement Tech Mahindra’s strategy to move towards platform-driven and automation-led delivery models.
“The acquisition of Avant will strengthen our ability to serve financial institutions at a time when the sector is balancing growth with rapid digital change,” said Tech Mahindra Ltd, BFSI and Public Sector Head – Americas, Roshan Shetty.
“Joining Tech Mahindra marks an exciting next phase for Avant. With our deep expertise in payments and wealth platforms combined with Tech Mahindra’s global scale, we look forward to helping financial institutions accelerate modernisation,” said Avant Techno Solutions, Chief Executive Officer, Srinivasa Varma Alluri.
Building a resilient growth engine
BFSI transformation deals are typically long-cycle and compliance-driven, offering stable and predictable revenue streams. By strengthening this vertical, Tech Mahindra is working towards improving revenue quality and margin profile.
The company is acquiring an 85% stake in Avant for about ₹196 crore, with the remaining 15% to be acquired after three years based on a predetermined valuation. The transaction is expected to be completed by July 2026. On completion the deal, Avant will become a subsidiary of TMCG and step-down subsidiary of Tech Mahindra.