New Delhi, March 2, 2025 — Excelsoft Technologies Ltd., a prominent vertical SaaS (Software-as-a-Service) provider specializing in the learning and assessment sector, has filed its draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth ₹700 crore.
The IPO will comprise a combination of a fresh issue of shares valued at ₹210 crore and an Offer for Sale (OFS) amounting to ₹490 crore, primarily from the company’s promoters—Pedanta Technologies and Dhananjaya Sudhanva, as detailed in the draft red herring prospectus (DRHP).
Additionally, Excelsoft may look to raise up to ₹270 crore in a pre-IPO funding round, which would reduce the fresh issue and/or OFS size, depending on the amount raised, the company indicated in the filing.
As of December 31, 2024, Excelsoft served 71 clients across 17 countries, including major markets such as the USA, UK, India, Singapore, Australia, Japan, Saudi Arabia, UAE, and Canada. Some of its notable clients include Pearson Education, AQA Education, NxGen Asia, Ascend Learning, and Brigham Young University, among others.
Excelsoft's IPO filing marks a pivotal moment in its growth strategy as the company looks to capitalize on the growing demand for specialized SaaS solutions in the learning and assessment domain.
The IPO will comprise a combination of a fresh issue of shares valued at ₹210 crore and an Offer for Sale (OFS) amounting to ₹490 crore, primarily from the company’s promoters—Pedanta Technologies and Dhananjaya Sudhanva, as detailed in the draft red herring prospectus (DRHP).
Additionally, Excelsoft may look to raise up to ₹270 crore in a pre-IPO funding round, which would reduce the fresh issue and/or OFS size, depending on the amount raised, the company indicated in the filing.
IPO Proceeds and Planned Utilization
Excelsoft intends to utilize the proceeds from the fresh issue to support its expansion and infrastructure plans. Specifically, the funds will be directed towards:- Acquisition of land and construction of a new office building
- Upgradation and improvement of external electrical systems at its Mysore facility
- Enhancements to the company's IT infrastructure
- General corporate purposes
Company Background and Market Presence
Founded over two decades ago, Excelsoft has established a strong presence in the learning and assessment technology market. The Karnataka-based company has long-term contracts with enterprise clients around the globe, providing specialized solutions tailored to various segments.As of December 31, 2024, Excelsoft served 71 clients across 17 countries, including major markets such as the USA, UK, India, Singapore, Australia, Japan, Saudi Arabia, UAE, and Canada. Some of its notable clients include Pearson Education, AQA Education, NxGen Asia, Ascend Learning, and Brigham Young University, among others.
Financial Performance
In FY24, Excelsoft reported a revenue from operations of ₹198.3 crore, with a profit after tax (PAT) of ₹12.75 crore. Despite strong financial results, the company notes that there are no directly comparable listed companies in India that have a similar business model or market focus.Market Outlook and Vertical SaaS Growth
The global SaaS market has witnessed significant growth, with vertical SaaS emerging as a leading trend. A report by Arizton highlights the growing demand for industry-specific solutions, predicting that vertical SaaS could account for nearly 50% of the global SaaS market by 2030.IPO Details
Anand Rathi Advisors has been appointed as the book-running lead manager for the IPO, and the company plans to list its shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).Excelsoft's IPO filing marks a pivotal moment in its growth strategy as the company looks to capitalize on the growing demand for specialized SaaS solutions in the learning and assessment domain.
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