As businesses embrace digital transformation, the demand for scalable and accessible IT solutions has surged. In an exclusive interview with Rajeev Ranjan, Editor of Digital Terminal, Sundaresan K, VP & Country General Manager for India & ANZ at Tech Data, discusses the company’s strong FY2024 performance, the shift in technology financing models, and how Tech Data Capital is supporting partners with flexible financial solutions. He also addresses the macroeconomic challenges facing IT providers and shares strategic advice for sustainable growth.
Rajeev: How has the overall growth of Tech Data been during the last year? What were the key factors that fueled this growth?
Sundaresan: We ended FY2024 on a strong note in Asia Pacific & Japan (APJ), with revenue at $4.0 billion, up 13.1% compared to the prior fiscal year’s $3.6 billion. This momentum carried on in Q1 FY2025, where revenue was $1.0 billion, compared to $955 million in Q1 FY2024.
The key factors driving this growth included enhanced investments in high-growth technologies such as data analytics, AI, hybrid cloud, and security so our partners could simplify complexities in tech adoption and achieve accelerated GTMs to outpace market growth. We expanded our capabilities in the region with the launches of Tech Data Capital and Destination AI™ and added powerful new security and commercial features to StreamOne, our global cloud platform that equips partners of all sizes with key platform capabilities such as marketplace syndication, commerce API, whitelabel storefronts, and more. We also signed over 20 new vendors in 2024 in APJ and acquired Orca Tech in the ANZ region. While the fundamentals were strong, our growth last year extended beyond financial figures.
Rajeev: What emerging trends do you see in technology financing and procurement within the APJ region, especially in the Indian market? (e.g., subscription-based models, cloud financing)
Sundaresan: Across the APJ region—and particularly in India—technology financing is evolving with how organizations consume technology. More businesses are opting for subscription-based and “as-a-service” models such as IaaS, and SaaS. A ‘Buy Now, Pay Later’ mindset for IT purchases is also emerging among Indian enterprises, particularly in education, healthcare, and retail businesses. These models shift technology procurement from capital expenditure to operating expenditure, improving accessibility and reducing upfront costs. This change is especially visible in cloud adoption. As cloud-based solutions become more widespread, financial offerings are adapting in parallel, embracing subscription-based billing and usage-driven pricing models that align with cloud consumption patterns.
Digital transformation across the nation is increasingly gaining momentum not only among large enterprises but also at the grassroots level. This widespread adoption of technology is driving demand for financial solutions that can support both scalability and affordability, especially as organizations explore new technologies. This is particularly evident among small & midsized businesses (SMBs) and companies in tier 2/3 cities as they seek bite-sized, affordable financing plans with quicker approval cycles.
In response, the role of financing arms among OEMs and distributors is growing. Programs offering flexible options such as deferred payments, zero-interest EMIs, leasing, and receivables financing are helping partners participate in large-scale opportunities, including government tenders. Procurement decisions are also beginning to reflect sustainability goals. This is prompting interest in financing structures that support circular practices, like refurb leasing and e-waste-inclusive contracts. On a larger scale, government-backed programs like the Digital India and Start-up India initiatives are pushing public-private investments in digital infrastructure and creating new opportunities for tech procurement.
Together, these shifts are reshaping how businesses in India and the APJ region at large approach technology adoption, from what they buy to how they pay for it.
Rajeev: How is Tech Data Capital positioned to adapt and serve the evolving needs of partners in the APJ market with regard to technology financing?
Sundaresan: In a dynamic market like India, IT channel partners, especially smaller ones, often face challenges around limited capital, fluctuating demand, and delayed payments. Tech Data Capital addresses these challenges by offering flexible financing models that go beyond traditional lending and integrate payment solutions directly into product sales. As transactions are fully funded upfront, this removes credit risk for partners, boosts purchasing power, and gives them the ability to invest in inventory, infrastructure, and growth without being constrained by conventional credit limitations.
Our financing is powered by financial institutions with deep IT ecosystem expertise, enabling better assessment of creditworthiness and greater term flexibility. Whether it's offering monthly payments on bundled hardware-software-service packages or enabling subscription-based models aligned to customer usage, our solutions are built to help partners meet evolving buyer expectations.
Tech Data Capital isn’t just for large players. It’s designed to support partners of all sizes—including those serving SMBs and government—with tailored payment options, dedicated support, and risk mitigation. In a fast-changing market, we’re helping partners unlock business innovation, improve cash flow, and build resilient, scalable growth.
Rajeev: Can you elaborate on the key macroeconomic challenges and how they are affecting the IT solutions providers in the APJ region when securing financing? (e.g., access to credit, high-interest rates)
Sundaresan: Partners are navigating tighter margins, increased competition, and unpredictable supply chain dynamics, all while striving to keep pace with rapid digital transformation. According to our 2024 Direction of Technology report for APJ, 35% of partners across the APJ region identified financial scalability and credit access as key challenges. The latter is also a significant macroeconomic hurdle.
Traditional lending institutions tend to apply a one-size-fits-all model that often excludes smaller or newer partners—especially those without long credit histories or collateral to offer. As interest rates rise, and capital becomes more expensive, even mid-sized firms are finding it harder to secure working capital to invest in new technologies, infrastructure, or expansion.
Adding to this pressure is the shift in how technology is being sold and consumed. As solution providers pivot toward subscription-based services and consumption-driven pricing, they're faced with longer sales cycles and delayed payments that strain cash flow just as the demand for agility and reinvestment rises. In this environment, finding financing models that align with the realities of the tech channel is no longer a nice-to-have; it’s a strategic imperative.
Rajeev: How do these financing limitations hinder the growth potential of partners in the APJ ecosystem? How does Tech Data aim to address the financing challenges you mentioned for APJ partners?
Sundaresan: The above financing limitations ultimately restrict partners’ ability to grow in lockstep with customer demand. Without adequate access to capital, many are forced to delay or scale back strategic investments—whether it’s expanding service offerings, onboarding new talent, or holding sufficient inventory. For partners shifting to as-a-service models, cash flow mismatches between upfront vendor payments and staggered customer billing can become a major bottleneck, limiting their capacity to take on larger or more complex deals.
This is where Tech Data Capital plays a critical role. By offering flexible payment solutions integrated directly into the sales cycle, we help partners bridge financing gaps without taking on added credit risk. Partners can structure deals on monthly or annual payment terms, unlocking the ability to pursue bigger opportunities and serve end customers with greater flexibility—while protecting their own cash flow. For smaller partners, this can be a powerful enabler of long-term growth in a capital-constrained market.
Rajeev: Can you highlight the key benefits that Tech Data offers to partners and their customers in terms of financing solutions? (e.g., flexible payment options, increased credit capacity)
Sundaresan: For partners, Tech Data Capital delivers flexibility in the way deals are organized by providing a diverse range of payment options, including leasing, installment agreements, and subscription-based models. This aids partners in maximizing their credit capacity, allowing them to undertake larger projects and serve more customers with varying budgets. These streamlined processes also ease the integration of financing into sales.
For end users/customers, improved financial instruments mean more autonomy and flexibility in tech adoption. For instance, pay-as-you-go models allow customers to pay only for the technology they actively use, aligning costs directly with their operational expenses and cash flow. By providing these pathways, Tech Data Capital improves partnership-led growth and enables customers to leverage technology in ways that help them not just achieve but surpass their business goals.
Rajeev: What major challenges do you see for partners in today’s IT business? What will be your advice to these partners for consistent growth by overcoming these challenges?
Sundaresan: Rapid digital transformation is creating unprecedented challenges for partners today. In our 2024 Direction of Technology report for APJ, we learned that 44% of partners count increased competition, margin pressures, and technological challenges as their top concerns. Adding to this, credit & financial scalability is a challenge for 35% of partners, as increased competition creates the need for enhanced financial scalability. Lastly, as technology adoption is growing, so are skill gaps, making ongoing technical education an obstacle for 40% of partners.
Leveraging distributor and vendor programs like Tech Data Capital that provide enablement, demand generation, and financing can help partners navigate this complex landscape. Additionally, specializing to build niche expertise, be it in cybersecurity, hybrid cloud, or data analytics, can help with consistent growth, while investing in certifications and training can help create long-term credibility. Prioritizing continuous learning is vital in navigating technological changes and addressing growing skills gaps. By focusing on these strategic shifts, partners can achieve sustainable growth in an evolving IT landscape.
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