Yotta Data Services is targeting the fourth quarter of FY27 for its initial public offering, subject to approval from the Securities and Exchange Board of India (Sebi). According to CEO Sunil Gupta, the company is planning to raise $1.5 billion by the end of the current fiscal year, with the IPO potentially raising up to $400 million. The Mumbai-based data centre operator is working towards ensuring compliance and is in touch with large funds based in the US and those with India offices. As reported by The Economic Times, the bulk of the $1.5 billion will likely come from a pre-IPO round, with the final IPO size dependent on how much money is raised beforehand.
Last month, Yotta closed a pre-IPO round to raise $150 million (₹1,500 crore) from non-institutional investors at a valuation of around $3.9 billion (₹37,000 crore). The company had earlier planned to list in the US but has now shifted its focus to India, where Gupta said the company's sovereign-cloud business makes a domestic listing a better fit. The CEO explained that the government's nudge was clear: why raise funds outside India when the company's complete build-out is in India, with the government being a huge customer for its entire sovereign cloud business.
According to reports from The Economic Times, the company plans to use the proceeds to expand its data centre footprint, sovereign cloud services, managed services and in deploying AI infrastructure including chips and cooling systems. Yotta expects to increase the number of Nvidia chips installed across its data centres from 37,000 to 85,000 by the end of this fiscal year. The Mumbai-based firm has been scaling up its data centre and AI infrastructure business amid growing demand for computing capacity in India's expanding AI ecosystem.
As reported by The Economic Times, Yotta joins its peer Sify Infinit Spaces to be among the first Indian data centre companies to tap the public markets as AI infrastructure demands massive capital investments. The company reported revenue of ₹890.7 crore and profit of ₹11.1 crore for the year ended March 2025. ST Telemedia Global Data Centres (STT GDC) is also reportedly eyeing a listing this year. The proposed $1.5 billion raise is significant even by India's rapidly expanding data-centre market standards, with analysts noting that Yotta is seeking to build a GPU-intensive AI infrastructure platform extending beyond traditional data-centre capacity to include GPUs, high-density power and cooling, networking, and storage.
Yotta has drawn up plans to raise $8.5 billion by 2029, even as it aims to more than quadruple its installed data centre capacity from 180MW to 800MW. The company was co-founded in 2019 by Gupta and Darshan Hiranandani, chief executive officer of real estate firm Hiranandani Group. India's data-centre market is being driven by regulatory requirements including RBI's mandate for payment data storage and Sebi's similar requirements for market participants, along with the rollout of 5G, proliferation of connected devices and rapid adoption of generative AI.
