AI Infra Provider Yotta Eyes $1.5 Bn IPO By March 2027: Report

After ESDS, AI data centre provider Yotta Data Services is now eyeing to go public and plans to file its draft IPO papers with the SEBI by October. The company is looking to go public within the March quarter of the ongoing fiscal year (Q4 FY27), CEO Sunil Gupta told  Reuters. 

The company is eyeing the raise of up to $1.5 Bn from its IPO, which is likely to solely comprise a fresh issue of equity shares. 

CEO Gupta told the publication that the capital will be used to repay debt, purchase graphics processing units (GPUs), and expand sovereign cloud infrastructure to address surging local AI computing demand. 

Inc42 has reached out to Yotta seeking comments on the development. The story will be updated based on their responses.

The Hiranandani Group-backed firm, which positions itself as India’s largest provider of NVIDIA-powered AI computing infrastructure, has already raised $150 Mn from non-institutional investors at a valuation of $3.9 Bn.

Founded in 2019 by Gupta and Darshan Hiranandani, Yotta started out as a colocation centre and integrated data centre services provider. 

It now earns 20% of its revenue from colocation, 25-30% from sovereign cloud and managed services, and about 50% from GPUs, Gupta told Inc42 recently. 

While it had earlier catered primarily to Indian startups and institutions like IIT Bombay and IIT Madras, Yotta has pivoted to focusing on international customers from whom it can extract higher pricing. They currently account for 75-80% of Yotta’s customer base, per the Reuters report. 

The Centre’s tax holiday for foreign companies that are providing cloud services globally while using data centre services from India has helped the company shift its customer mix towards global customers, according to Gupta. 

Yotta has planned to spend over $7 Bn on AI infrastructure by the end of FY27, out of which $4 Bn has already been committed. 

To support its expansion while offsetting the high cost of GPU acquisition, it is exploring financing structures where its customers fund and own the GPUs. 

Yotta would subsequently share the revenue generated by the hardware with the partner (with around 75% going to the partner and 25% to Yotta), and then buy them back at market value.

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