Yotta Plans $1.5 Billion IPO for AI Infrastructure Expansion

Yotta Data Services intends to file draft papers for an initial public offering with India's SEBI by October 2026. The company's CEO, Sunil Gupta, told Reuters it plans to launch the IPO and list on the stock exchange in the January-March quarter of the 2027 fiscal year.

The IPO is expected to raise up to $1.5 billion through a fresh issue of equity shares. Gupta stated the capital will be used for three primary purposes: repaying existing debt, purchasing graphics processing units (GPUs), and expanding its sovereign cloud infrastructure. This move aims to address surging local demand for AI computing.

Funding and Valuation

To support its growth ahead of the public listing, Yotta has already secured $150 million from non-institutional investors. This funding round valued the company at $3.9 billion. Yotta is backed by the Hiranandani Group and was co-founded in 2019 by CEO Sunil Gupta and Darshan Hiranandani.

The company started as a colocation and integrated data centre services provider. Its revenue streams have since diversified significantly. According to Gupta, the current revenue breakdown is approximately 50% from GPU services, 25-30% from sovereign cloud and managed services, and 20% from colocation.

Strategic Pivot and Customer Base

Yotta has undergone a notable shift in its target customer base. It initially served Indian startups and institutions like IIT Bombay and IIT Madras. The company has now pivoted to focus on international customers, who typically provide higher pricing. A Reuters report indicates that international clients currently constitute 75-80% of Yotta's customer base.

CEO Gupta attributed this shift partly to a government tax holiday. This policy benefits foreign companies that provide global cloud services while using data centre services located in India.

Major Infrastructure Investment

The company has an ambitious plan to invest over $7 billion in AI infrastructure by the end of the 2027 fiscal year. Of this total, $4 billion has already been committed. To manage the high cost of acquiring GPUs, Yotta is exploring alternative financing structures.

One model under consideration involves having customers fund and own the GPUs. Yotta would then operate the hardware, sharing the generated revenue with the partner. In such an arrangement, roughly 75% of the revenue would go to the partner owning the GPU, and 25% would go to Yotta. The company would later have the option to buy back the hardware at its market value.

Inc42 reported that it has contacted Yotta for comment on the IPO plans and will update its story based on the company's response. Yotta positions itself as India's largest provider of NVIDIA-powered AI computing infrastructure.