Pune-based technology and language solutions provider, Fidel Softech Limited, has taken a strategic leap in its global growth journey. In a meeting held on July 17, 2025, the company’s Board of Directors approved a significant equity investment of USD 3 million in its wholly owned US subsidiary, FidelSoft Inc, as part of its expansion plan in North America.

This move is aimed at facilitating the acquisition of a Limited Liability Company (LLC) based in the United States, aligning with Fidel’s core business segments in Langtech, IT services, and consulting.

Deal Structure and Strategic Intent

The investment will be made through cash infusion in the form of share capital, and the entire process is expected to be completed in two months, subject to regulatory compliance under the RBI’s Overseas Investment (ODI) regulations of 2022.

The total investment of USD 3 million will be spread over multiple tranches and will enable FidelSoft Inc, which has its registered office at Austin, Texas, to acquire the target entity and consolidate Fidel Softech's foothold in the US market.

FidelSoft Inc, incorporated in September 2024, is a 100% subsidiary of Fidel Softech Limited and operates in the service industry, primarily offering language technology (LangTech), IT consulting, and digital transformation services.

Board Statement and Strategic Rationale

As per the official filing with the National Stock Exchange (NSE), this investment is considered a material event and aligns with the company’s vision of expanding its global portfolio, especially in the US tech consulting space.

The filing also clarified that the acquisition will not fall under related party transactions, and the promoters have no personal interest in the transaction beyond their stake in Fidel Softech Limited.

This acquisition is being positioned as a strategic initiative to deepen Fidel’s global delivery capability, gain new client access, and enhance its Langtech service offering to enterprises and public sector organizations alike.

Business and Financial Snapshot

In FY 2024–25, FidelSoft Inc clocked a modest turnover of approximately ₹33 lakh, which is expected to grow significantly after the acquisition. The target LLC's business is reportedly aligned with Fidel’s existing lines and is expected to enhance synergies in the Langtech and consulting domains.

Meanwhile, the parent company, Fidel Softech Limited, continues to strengthen its position in the Indian tech sector. Having listed on the NSE, it has seen positive investor sentiment backed by consistent growth in revenue, EBITDA, and PAT over the last few years.

Compliance and Next Steps

As part of its disclosure obligations under Regulation 30 of SEBI (LODR) Regulations, 2015, and the SEBI circular dated September 9, 2015, Fidel Softech has submitted the detailed resolution and investment plan to the exchange.

The transaction also triggers compliance under the Foreign Exchange Management (Overseas Investment) Regulations, 2022, which will be adhered to during the remittance of funds.

Future Outlook

The acquisition is expected to:

• Accelerate Fidel's expansion in the US Langtech and consulting space

• Enhance its technological depth and client base

• Provide a gateway to strategic partnerships and government contracts in the US

• Strengthen earnings visibility and global positioning in FY26 and beyond

This bold move reaffirms Fidel Softech’s long-term vision to evolve into a globally recognized Langtech and IT services player, leveraging both organic growth and strategic acquisitions.

About Fidel Softech Ltd

Established in 2004 and headquartered in Pune, Fidel Softech Ltd is an ISO 9001-certified company engaged in language technologies, IT consulting, localization, software development, and digital services. The company caters to sectors such as BFSI, manufacturing, pharma, retail, education, and government enterprises, offering multilingual IT solutions tailored to diverse markets.

With growing international operations and a focus on AI-enabled language technology, Fidel Softech continues to deliver value-driven solutions for clients across India, Asia, and now the US.

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