Yotta Data Services Plans to Raise $500Mn Capital Ahead of India Listing

Yotta Data Services is reportedly seeking to raise fresh capital at a valuation of around $4 billion, according to Bloomberg.

The Hiranandani Group-backed company is reportedly aiming to raise approximately $500 million to $600 million in a pre-IPO funding round. This will precede the filing of its draft prospectus for an initial public offering (IPO), which could take place within weeks.

The company is also expected to raise a similar amount through the public offering.

Yotta IPO Efforts

As part of its IPO preparations, Yotta is reportedly in discussions with several investment banks to manage the offering. These include the local arms of Nomura Holdings and Goldman Sachs Group, as well as ICICI Securities and Kotak Securities.

The company has reportedly received in-principle approval for the listing and is currently awaiting final clearance from the Securities and Exchange Board of India.

Potential investors in the pre-IPO round include sovereign wealth funds such as Mubadala Investment Company, along with several family offices of prominent Indian billionaires, some of whom have already committed to the round.

Yotta India Listing Plan

Earlier, in February, reports had indicated that Yotta was targeting around $1.2 billion in pre-IPO fundraising, citing comments from Chief Executive Officer Sunil Gupta.

In a strategic shift, Yotta had previously withdrawn its plan to merge with the Nasdaq-listed special purpose acquisition company Cartica Acquisition Corp., despite having secured all necessary regulatory approvals.

A SPAC is a company created to raise funds through an IPO, which are then used to acquire or merge with an existing business. Instead, Yotta has chosen to pursue a domestic listing in India, aligning with its “India-first” strategy.

The company has emphasised that a significant portion of its assets, customers, and long-term growth prospects are anchored in India. As a result, it believes that listing domestically will allow Indian investors to participate in its growth journey. Gupta noted that, given its sovereign positioning and strong domestic footprint, it makes strategic sense for the company to list in India first.

Yotta IPO Timeline

Looking ahead, Yotta is likely to target a public listing in the financial year 2027, subject to internal readiness and market conditions.

For now, the company remains focused on execution, including expanding its data center capacity, onboarding customers, and strengthening its AI and cloud platforms. Once these operational fundamentals are firmly in place, it plans to move forward with the IPO process.