Servify's Plans to Files DRHP with SEBI for $500 Million IPO

03 February 2025
2 min read
Servify's Plans to Files DRHP with SEBI for $500 Million IPO
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Servify, a device management startup based in Mumbai, is preparing for an initial public offering (IPO). Servify aims to file its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI) by August of this year, with a potential listing in 2025 or the first quarter of 2026. The IPO is expected to raise between $400 million (Rs 35,000 crore) and $500 million (Rs 45,000 crore), with a target valuation of $1.5 billion. It is expected that 55-60% of the public issue will be an offer-for-sale (OFS) and the rest a fresh issue of equity shares.

Pre-IPO Funding Round

Before filing the DRHP, Servify was also in discussions with both existing and new investors to secure $100 million in a pre-IPO funding round. This round is expected to elevate the nine-year-old company to unicorn status. The pre-IPO round is said to be largely primary, with some secondary sales where early investors may cash out and there might also be some employee stock ownership plan buybacks. Servify was previously valued at about $850 million when it raised $65 million in 2022.

Company Overview

Founded in 2015 by Sreevathsa Prabhakar, Servify provides device management services such as device protection, product buyback, and device exchange. The majority of the company’s revenue comes from the sale of device protection plans and platform licenses. Servify initially operated solely in India for its first three years before expanding its operations to international markets, including the US, Canada, China, and the Middle East.

Financial Performance

Servify's revenue exceeded Rs 1,000 Cr in the current financial year (FY25) and the company has achieved EBITDA profitability. In FY24, Servify's operating revenue increased by 23% to Rs 754 crore, up from Rs 611 crore in FY23. The company's net loss also saw a significant reduction of 59% year-on-year (YoY), dropping to Rs 93.81 crore in FY24. To date, Servify has raised a total funding of approximately $130 million and is backed by investors such as BEENEXT, Blume Ventures, DMI Sparkle Fund, and Iron Pillar.

Other Information

Servify has mandated Kotak Investment Bank for the fundraise. The company plans to use the fresh capital to expand to new markets. Servify offers damage protection, extended warranty, and trade-in services for users of various brands like Apple, Samsung, and Xiaomi. Servify has joined other B2B Indian startups, like OfBusiness and Zetwerk, which are also planning to go public.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

 

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