That seems to be the case with its M&A strategy as well. Take the case of Australia-headquartered Scalable Data Systems and of U.S.-based Sopris Systems, both acquired with the explicit aim of strengthening the company’s Microsoft Dynamics footprint in different geographies. But, explains Reddy, the deals also gave Sonata an entry point into two new verticals: agribusinesses via Scalable, and the utility and service industry through Sopris. And these two verticals turned out to be lifesavers during the pandemic.

But Deloitte India’s Sudarshan says that M&As aren’t the only option for mid-tier firms to go to the next level of growth. Instead, he identifies a combination of levers they probably need to pull: looking at non-linear growth, or “outcome-based revenue models”; tapping the gig economy and having a mobile workforce; targeting tech-based acquisitions; and collaborating within the ecosystem.

Reddy has a plan in place. “We have an internal [target] to double our business in three years’ time, both organically and inorganically. The root for that is Platformation.” The inorganic strategy is to continue scouting for companies with either good talent, access to new markets, a good customer base, or one that can open up a new industry vertical. On the organic front, the plan is simply to get more clients and continue investing in R&D, which he estimates is currently about 5%-6% of revenue. But whether acquisitions or new clients, the key, he says, is a deep focus on executing Sonata’s Platformation strategy.

“Five years from now we visualise ourselves as a unique digital transformation partner to our clients,” says Reddy. “And that, I think, is the journey we are on, and that’s where I think we see this as the next platform for growth for the next at least three to five years or so.”

Will Sonata grow to the next level? It has certainly built the platform for it.

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