Sri Lanka may not be well-known for its startup ecosystem, but one company has stood out in the South Asian island nation over the past two decades. WSO2, an open-source enterprise software provider, counts big-name customers such as Samsung, Axa, and AT&T. Recently, WSO2 agreed to be acquired by private equity firm EQT for a reported valuation of $600 million.
The acquisition, pending regulatory approvals, will make EQT the sole owner of WSO2, acquiring all outstanding shares, including those held by investors, current employees, and ex-WSO2 employees. Thirty percent of the proceeds will be distributed among the employees.
This acquisition presents a significant opportunity for employees looking to launch their ventures.
WSO2’s co-founder and CEO, Sanjiva Weerawarana, emphasized the importance of equity, highlighting the company’s culture of employee shareholding since its inception.
Thriving through war and unrest
Founded in Colombo in 2005, WSO2 specializes in middleware stack tools like API management and identity and access management. The company’s success is credited to its visionary CEO Sanjiva Weerawarana, a veteran in the open-source community.
Despite challenges like a civil war and pressure to move operations to the U.S., WSO2 has maintained its base in Sri Lanka. Weerawarana’s commitment to building a tech company in Sri Lanka has paid off, with 80% of WSO2’s workforce based in the country.
Intel inside
WSO2, after securing initial angel funding, gained support from Intel Capital, an early backer that provided critical funding for the company’s growth. Intel Capital’s investment was pivotal for WSO2’s development and expansion.
Intel Capital’s strategic investments in open-source startups aimed to build an alternative stack on Intel hardware. WSO2, with its base in Asia, aligned perfectly with Intel Capital’s vision of supporting and nurturing open-source innovation.
