Temasek Buys 17-18% Stake in VFS Global for $950 Million, Boosting Valuation to $7 Billion

Singapore’s state-owned investor, Temasek Holdings, has agreed to purchase a 17-18% stake in VFS Global, a visa outsourcing and technology services company backed by Blackstone Inc., for $950 million. This deal values VFS Global at $5 billion in equity and $7 billion in enterprise value, according to sources familiar with the matter.

“The deal has been finalized, and an official announcement is expected soon,” one of the insiders said.

Blackstone, which bought a 75% stake in VFS Global from EQT AB in 2021 for $1.8 billion, is looking to reduce its investment while retaining some ownership. Temasek’s investment represents a strategic move into a profitable, well-managed company.

Blackstone had explored several ways to monetize its stake, including selling 51% or launching an IPO. VFS Global is still expected to go public within two to three years, one source mentioned.

VFS Global, headquartered in Zurich and Dubai, helps governments with visa processing and passport services. Since its founding in 2001 by CEO Zubin Karkaria, it has processed 294 million applications and 141 million biometric enrollments, with a strong presence in India.

The company is positioned for growth thanks to a recovery in global travel post-pandemic, along with rising incomes and outbound tourism in India. VFS recently added Saudi Arabia as a client, which will further boost its application processing volume.

VFS Global’s revenue surged by 65% in 2022-23, and it continued to perform well in 2023-24, with an operating margin of over 33%.