Indian data center company Yotta Data ServicesAims to go public between January and March 2027, with a maximum of $1.5 billionThe company is moving forward with a fundraising effort (approximately 2 trillion won). It announced that it plans to submit draft documents to Indian securities authorities in October.
The funds raised will be used to repay debt, purchase GPUs, and expand sovereign cloud infrastructure to ensure that data remains within India's borders. As demand for AI computing grows rapidly, data center operators are turning to the open market to secure the massive capital needed for equipment investments.
The IPO application hasn't been finalized yet, and the size hasn't been determined either. Depending on the results of the pre-IPO fundraising and market conditions, the actual amount raised in the public offering may be less than $1.5 billion.
| Target for listing: January–March 2027
Sunil Gupta, co-founder and CEO of Yotta, said in an interview with Reuters that the company plans to pursue an IPO in January through March 2027. The initial schedule calls for the submission of a draft registration statement in October 2026.
The initial public offering is still in the planning stages, so the schedule may change depending on the review process and market conditions. Specific terms—such as the offering price, number of shares, and target enterprise value—can only be confirmed once the official documents are made public.
| Plan to raise up to $1.5 billion
The company has set a maximum fundraising target of $1.5 billion. Yotta plans to allocate the funds toward repaying existing debt, purchasing additional GPUs, and expanding its Sovereign Cloud infrastructure.
However, Gupta explained that since the company is already raising funds through pre-IPO investments, the amount needed during the public offering phase may be less than originally planned. "Up to $1.5 billion" is a target close to the upper limit, not a confirmed amount to be raised.
| GPU purchases are driving up capital demand
To provide high-performance AI services, a data center building alone isn't enough. You need to secure GPUs—such as NVIDIA accelerators—along with high-speed networks, storage, and cooling and power infrastructure all at the same time.
Yotta describes itself as India's largest provider of NVIDIA-based AI computing infrastructure. With both GPU prices and demand running high, securing equipment proactively has become impossible without raising a large amount of capital.
| A Cloud Where Data Remains Within India
A sovereign cloud is a service that keeps data storage, processing, and operational control within a specific country. Government agencies, financial institutions, healthcare providers, and large corporations may need to restrict the transfer of data overseas due to regulations and security requirements.
Yotta is targeting this demand by providing AI computing and cloud services within India. The business opportunity lies in the fact that global companies can use local data centers while still complying with India's data regulations and procurement requirements.
| Enterprise value of approximately $3.9 billion in the pre-investment round
In an August LinkedIn post, Gupta stated that Yotta had secured new growth funding $150 millionand raised, with a company valuation at the time of approximately $3.9 billion...was assessed as such, he said.
The company continues to seek additional pre-seed funding, but has not disclosed its total funding raised or revenue to date. The enterprise value applied at the time of the IPO may be reassessed based on business performance, GPU inventory, customer contracts, and market sentiment.
| Overseas customers account for 75–80%
Yotta helps global customers across their entire customer base 75~80%... he said. Gupta explained that power constraints in the U.S. and Europe, GPU shortages, and geopolitical uncertainty in the Middle East are making India a more attractive candidate for AI infrastructure.
The company noted that the Indian government’s announcement of 20-year tax incentives for foreign companies using local data centers also helped boost confidence among overseas customers. However, the actual conditions for receiving these benefits and the long-term sustainability of the policy must be examined separately.
| New GPU Financing Structure Also Under Review
Yotta is also considering a financial structure in which partners purchase GPUs through special-purpose entities, share the revenue generated by the equipment, and then transfer ownership to Yotta after 4 to 5 years.
While this can reduce the initial cash outlay, it may also complicate the terms of profit sharing and increase the risk of depreciation in equipment value. Given the rapid pace of generational change in AI accelerators, the competitiveness and residual value of the equipment will become key factors in a few years.
| A Litmus Test for India's AI Infrastructure Growth
Yotta's push for an IPO reflects India's efforts to become a major hub not only for AI model development but also for GPU cloud services and data centers. If the company successfully raises funds, it could help expand local computing capacity and support data sovereignty policies.
However, the draft documents haven't even been submitted yet, and the actual size and schedule of the offering are subject to change. Once the official securities registration statement is released, To assess the sustainability of the business, you need to review revenue, profit and loss, debt, concentration of major customers, and GPU supply contracts.
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