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

AI data center provider Yotta Data Services is planning to go public, with CEO Sunil Gupta revealing that the company aims to file its draft IPO papers with SEBI by October, aiming to list in the March quarter of FY27. Yotta, which is India's largest NVIDIA-powered AI computing infrastructure provider, is targeting an IPO value of up to $1.5 billion, consisting entirely of a fresh equity share issuance.

The capital from the IPO will be utilized to repay debt, purchase GPUs, and expand sovereign cloud infrastructure to accommodate the growing demand for local AI computing. Yotta, backed by the Hiranandani Group, has raised $150 million from non-institutional investors at a $3.9 billion valuation since its founding in 2019. The company's revenue streams now consist of 20% from colocation, 25-30% from sovereign cloud and managed services, and around 50% from GPUs.

With the tax holiday for foreign companies providing global cloud services using Indian data centers, Yotta has shifted its customer base to focus more on international customers, accounting for 75-80% of its current clientele. The company intends to spend over $7 billion on AI infrastructure by the end of FY27, with $4 billion already committed.

To fund this expansion and counteract the high cost of GPU acquisition, Yotta is exploring financing structures where customers fund and own the GPUs, while Yotta shares revenue generated by the hardware with partners, retaining 75% and returning the remaining 25% to the partners.