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IRIS Business Services Ltd. (NSE: IRIS) has announced a significant strategic divestment, selling its GST Application Service Provider (ASP) business and its entire stake in subsidiary IRIS Logix Solutions Pvt. Ltd. to US-based Sovos Compliance Ltd. in a transaction valued at ₹151.24 crore.
The sale marks a turning point for the fintech company, which has been a key player in India’s tax compliance and e-invoicing space. The deal involves a multi-step process: Sovos will first acquire a minority stake in IRIS Logix, followed by the full transfer of IRIS’s GST ASP operations to the subsidiary, and finally the complete sale of IRIS Logix to Sovos.
Strategic Realignment
The transaction reflects a realignment of IRIS’s core business focus. While the company has gained traction in regulatory technology and compliance solutions, the divestment signals a shift away from India’s GST ecosystem and toward global regtech and data-reporting initiatives.
Industry analysts suggest this move may help IRIS streamline its operations and redeploy capital toward its international XBRL reporting and structured data solutions, where it already maintains a presence across Asia, Europe, and Africa.
“This deal is about sharpening focus,” said a source familiar with the company’s strategic planning. “IRIS is likely preparing to scale globally by offloading high-compliance, India-specific operations.”
Sovos Expands Indian Footprint
For Sovos, a global leader in tax compliance and reporting software, the acquisition provides a stronger foothold in the fast-growing Indian GST market—one of the world’s largest digital indirect tax infrastructures. Sovos is expected to integrate IRIS Logix’s platforms and clientele into its global compliance network.
The move mirrors Sovos’s broader expansion strategy, which has seen it acquire similar firms across Latin America and Europe to build a seamless global compliance architecture.
What’s Next for IRIS?
IRIS Business Services, founded in 2000 and listed on the NSE, has a client base that spans over 40 countries. With the GST ASP unit now sold, the company is expected to refocus on its core competencies in global structured data, ESG reporting solutions, and regtech tools for financial institutions and regulators.
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