Excelsoft Technologies Ltd, a vertical SaaS (software-as-a-service) company focused on the learning and assessment market, has submitted draft papers to capital markets regulator Sebi to raise Rs 700 crore through an initial public offering (IPO).
According to the draft red herring prospectus (DRHP), the Karnataka-based company's proposed IPO consists of a fresh issue of shares valued at Rs 210 crore and an offer for sale (OFS) of shares worth Rs 490 crore by the promoters -- Pedanta Technologies and Dhananjaya Sudhanva.
The company may consider raising up to Rs 270 crore in the pre-IPO round.
"If the pre-IPO placement is undertaken, then the amount raised from the pre-IPO placement will be reduced from the fresh offer size and/or the Offer for Sale portion," according to the business.
Excelsoft has over two decades of experience providing technology-based solutions in a variety of learning and assessment segments through long-term contracts with enterprise clients around the world.
As of December 31, 2024, it served 71 clients from 17 countries, including the United States, United Kingdom, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, the United Arab Emirates, and Canada.
Some of its notable clients include Pearson Education, Inc., AQA Education, Colleges of Excellence, NxGen Asia PTE LTD, Pearson Professional Assessments Ltd, Sedtech for Technology Education & Learning WLL, Ascend Learning LLC, Brigham Young University--IDAHO, Training Qualifications UK, Surala Net Co Ltd, Excel Public School, and The Chartered Quality Institute.
Excelsoft reported revenue from operations of Rs 198.3 crore in FY24, with a profit after tax (PAT) of Rs 12.75 crore.
According to the draft papers, there are no other listed companies or peers in India with a similar business composition and segment contribution.
According to an Arizton report, the global SaaS market has expanded rapidly, with vertical SaaS emerging as a dominant trend that offers specialized, industry-specific solutions. This shift has positioned vertical SaaS to grow even faster than general SaaS, with estimates indicating that vertical SaaS will account for nearly half of the SaaS market by 2030.
Anand Rathi Advisors is the book running lead manager for the issue. The company's equity shares are proposed to be listed on the BSE and NSE.
