Firstsource Solutions Limited , a prominent player in the Business Process Outsourcing (BPO) sector, has taken a significant step to strengthen its foothold in the Middle East market. The company announced the incorporation of a new wholly owned subsidiary, FIRSTSOURCE MIDDLE EAST SERVICES L.L.C., in Dubai, United Arab Emirates (UAE) on July 25, 2025.

Subsidiary Details

The newly established entity, FIRSTSOURCE MIDDLE EAST SERVICES L.L.C., has been set up with an authorized capital of 300 shares at AED 1,000.00 per share. Firstsource Solutions Limited holds 100% shareholding in the subsidiary, having subscribed to the share capital at face value.

Strategic Expansion

This move is part of Firstsource's strategic initiative to expand its BPO operations in the Middle East region. The company aims to tap into the growing demand for IT and BPO services in Dubai and the broader UAE market.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Firstsource Solutions Limited has duly informed the National Stock Exchange of India Limited and BSE Limited about this development.

Current Status

As of now, FIRSTSOURCE MIDDLE EAST SERVICES L.L.C. has not commenced business operations. Consequently, the subsidiary has not generated any turnover. The company is expected to begin its operations in due course, aligning with Firstsource's expansion strategy in the region.

Industry Focus

The new subsidiary will operate in the Information Technology (BPO) sector, consistent with Firstsource Solutions Limited's core business. This alignment is expected to leverage the parent company's expertise and experience in delivering BPO services to clients globally.

This strategic move by Firstsource Solutions Limited underscores the company's commitment to expanding its global footprint and capitalizing on emerging opportunities in the Middle East's growing IT and BPO market. As the subsidiary begins its operations, it will be interesting to see how this expansion contributes to Firstsource's overall growth and market presence in the region.

Firstsource Solutions Limited has successfully completed its acquisition of Pastdue Credit Solutions, marking a significant milestone in the company's UK expansion strategy. The transaction was finalized on December 11, 2025, after receiving all necessary regulatory approvals.

Acquisition Completion Details

Firstsource Solutions UK Limited, a wholly-owned subsidiary of Firstsource Solutions, has acquired 100% ownership of Pastdue Credit Solutions for an aggregate consideration of GBP 22 million. The deal structure includes both upfront payment and earnouts, representing a cash consideration transaction.

Regulatory Approvals Secured

The completion follows the receipt of all requisite regulatory approvals, including clearances from the Financial Conduct Authority (FCA) and under the National Securities and Investment Act 2021 (NSI Act). The Share Purchase Agreement was originally signed on July 18, 2025, with the transaction subject to these regulatory conditions.

Strategic Market Expansion

This acquisition strengthens Firstsource's position in the UK debt collection services market, particularly in utilities, telecommunications, and public sector segments. The move comes at a strategic time, with the UK collections market opportunity estimated at over GBP 1.90 billion, driven by rising consumer debt and growing private agency involvement in public sector collections.

Dr. Sanjiv Goenka, Chairman of RPSG Group and Firstsource, emphasized the company's commitment: "This move underscores our long-standing commitment to UK employment. We continue to believe that investing in local talent and infrastructure is integral to building a long-term sustainable business."

About Pastdue Credit Solutions

Founded in 2005 and incorporated on July 21, 2005, Pastdue Credit Solutions is an FCA-registered UK-based collections agency. The company specializes in white-label, early arrears, and debt collections recovery services, serving major banks, utility providers, telecommunications companies, and government bodies.

Future Outlook

The completed acquisition enables Firstsource to leverage its digital-first, AI-driven capabilities alongside Pastdue Credit Solutions' local expertise and established client relationships. Phil Grant, Chairman of Pastdue Credit Solutions, expressed optimism about the partnership: "This partnership has the potential to enable a new and exciting chapter for our people, our valued clients, and our future."

The transaction represents Firstsource's continued focus on expanding its Business Process Services (BPS) capabilities in key international markets, particularly in the growing debt collection sector where regulatory compliance and technological innovation are increasingly important.