Yotta plans IPO of up to Rs 8,000 cr to fund AI infra push
Yotta Data Services is preparing to file its draft prospectus for an initial public offering. The company aims to raise approximately six thousand to eight thousand crore rupees. These funds will support expanding data centre footprint and AI infrastructure deployment. Yotta recently secured one hundred fifty million dollars in a pre-IPO funding round. This move positions Yotta to meet growing…
Mumbai-based Yotta Data Services, spearheaded by the Hiranandani Group, is gearing up to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an upcoming initial public offering (IPO), according to sources. The company aims to raise between ₹6,000 and ₹8,000 crore through this IPO, with Kotak Mahindra Capital, ICICI Securities, and SBI Capital Markets serving as lead managers.
Notably, Yotta joins Sify Infinit Spaces as one of the first Indian data center companies to venture into public markets, driven by the escalating demand for AI infrastructure, which demands substantial capital investments. Additionally, ST Telemedia Global Data Centres (STT GDC) is also considering a listing this year.
Yotta intends to raise a total of ₹15,000 crore through a blend of pre-IPO and IPO activities. Earlier this month, the company successfully closed a pre-IPO round, securing $150 million (₹1,500 crore) from non-institutional investors at an estimated valuation of $3.9 billion or ₹37,000 crore. The ultimate goal is to raise $1.2-$1.5 billion, with $400 million to be sourced from high-net-worth individuals (HNIs) and family offices, as well as global private equity funds.
Roughly $400 million will flow from HNIs and family offices, while global private equity funds will contribute the remaining $400 million.
The funds raised will be allocated towards expanding Yotta's data center footprint, sovereign cloud services, managed services, and deploying AI infrastructure, including chips and cooling systems. The Mumbai-based firm is intensifying its efforts in the data center and AI infrastructure space due to the mounting demand for computing capacity in India. Over the next two years, Yotta plans to invest $2 billion (₹16,600 crore) in procuring Nvidia's latest AI chips.
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