Yotta Plans Q1 2027 IPO, Targets Fundraise of Up to $1.5 Billion

Yotta Data Services plans to enter the public market in the January-March quarter of 2027 as it expands its artificial intelligence computing and cloud infrastructure operations. Chief Executive Officer Sunil Gupta told Reuters that the Hiranandani Group-backed data-centre company aims to raise up to $1.5 billion through the proposed initial public offering.  

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The company intends to file its draft IPO papers in October. Money raised through the issue would be used to repay debt, purchase graphics processing units and extend Yotta’s sovereign cloud infrastructure, which is designed to retain data within national borders.  

The planned listing comes as requirements for AI computing infrastructure continue to grow. International technology companies, including Google and Amazon, are also expanding their presence in India.  

Yotta is raising money from private investors ahead of the proposed listing. Gupta said the public offer could be smaller than the company had initially considered because a substantial part of its funding requirement has already been met through the pre-IPO exercise. He did not disclose Yotta’s revenue or the amount collected so far.  

Some details of the company’s recent fundraising are already in the public domain. Gupta said in a LinkedIn post last month that Yotta had raised $150 million, or Rs 1,400 crore, as primary growth capital. The transaction valued the company at around Rs 37,000 crore, equivalent to $3.9 billion.  

Data-centre operators have increasingly looked towards public markets as demand for computing capacity rises and the cost of acquiring GPUs adds to their capital requirements. Yotta identifies itself as India’s largest provider of AI computing infrastructure powered by Nvidia.  

Gupta said India is attracting interest as a destination for investment in AI infrastructure. Expansion in the United States and Europe has been slowed by power constraints and GPU shortages, while tensions in the Middle East have created geopolitical uncertainty.  

Global customers account for 75% to 80% of Yotta’s client base, according to Gupta. He described India as a large emerging market for companies looking to build AI infrastructure.  

Confidence among overseas customers has also been supported by a government measure announced in February. Gupta referred to the 20-year tax holiday offered to foreign companies that use data centres located in India.  

Apart from its IPO and pre-listing fundraising, Yotta is examining another route to finance the purchase of GPUs. Under the structure being considered, partners would acquire the chips through special-purpose vehicles and receive a share of the revenue earned from them. Ownership of the GPUs would pass to Yotta after four to five years, Gupta said.  

Source: Read the Moneycontrol report