New Delhi, June 23 -- Private equity firms have found their new interest-India's nimble, under-$250 million IT services companies. Global players, including Blackstone Inc., EQT AB and Multiples Alternate Asset Management, are pumping capital into these smaller tech firms, drawn by their faster growth trajectories, lean operations and product-focused strategies.

At least three experts attribute this trend to the higher growth prospects and leaner teams of smaller IT companies. Multiples invested $200 million to buy a controlling stake in QBurst in February, whereas EQT bought WSO2 in August last year. EQT also bought Indium in December 2023, andBlackstone bought a controlling stake in R Systems in November 2022.

This bet on smaller tech...