BDO India, a prominent professional services firm, is reportedly in discussions with several private equity (PE) firms to secure growth capital. This move positions BDO India as the second among the top six firms, following Grant Thornton Bharat, to explore external funding, signaling a growing trend of PE investments in the professional services sector.

Sources familiar with the matter indicate that BDO India has been in preliminary talks with three to four PE companies. The firm is seeking capital to fuel its expansion plans, which include extending its reach beyond India and consolidating its presence among BDO member firms in the Asia-Pacific region.

To facilitate the potential investment, BDO India has strategically restructured its operations, transitioning its services business from a limited liability partnership (LLP) to a company. This restructuring, valued at approximately ₹750 crore, streamlines the process for attracting and securing private equity investment. The firm intends to dilute stakes specifically in its non-audit services and technology arm, which constitute a significant portion of its revenue.

BDO India anticipates a top-line revenue of around ₹1,500 crore for the fiscal year 2025-26. Over the past three years, the firm has demonstrated consistent annual growth, ranging between 26% and 30%. Notably, approximately 65% of its current revenue is derived from non-audit verticals, encompassing areas such as tax, outsourcing, advisory, and deal services. This diversified revenue stream makes BDO India an attractive target for PE firms looking to invest in high-growth areas within the professional services market.

Given that BDO member firms globally have not historically engaged in private equity deals, BDO India is collaborating closely with BDO International to establish appropriate safeguards. These measures are designed to ensure that the firm retains control and that the external funding aligns with its long-term strategic objectives. While BDO India has not officially commented on the matter, these discussions reflect a broader trend of professional services firms seeking external investment to accelerate growth and expand their capabilities.