India's Yotta targets Jan-March 2027 IPO, seeks up to $1.5 billion amid AI boom
NVDA•Rising AI demand and pre-IPO fundraising
The move comes as demand for AI computing infrastructure surges and global tech giants, including Google GOOGL.O and Amazon AMZN.O, expand their presence in India.
Yotta is currently raising pre-IPO capital and expects the IPO portion to be smaller than initially planned because much of its fundraising target has already been met, Gupta said, declining to disclose revenue or the amount raised so far.
Gupta said in a LinkedIn post last month that Yotta had raised $150 million in primary growth capital at a valuation of about 370 billion rupees ($3.9 billion).
GPU costs, financing structures and India's appeal
Data centre operators are increasingly turning to public markets as rising GPU costs and strong demand for computing capacity increase capital requirements. Yotta says it is India's largest provider of Nvidia NVDA.O-powered AI computing infrastructure.
Gupta said India was becoming an attractive destination for AI infrastructure investment as power constraints and GPU shortages slow expansion in the United States and Europe, while geopolitical tensions create uncertainty in the Middle East.
"India is again coming to be a big green market for everybody," he said, adding that global clients account for 75%-80% of Yotta's customer base.
Gupta said a 20-year tax holiday announced by the Indian government in February for foreign firms using local data centres had boosted confidence among overseas customers.
Yotta is also exploring financing structures under which partners would purchase GPUs through special-purpose vehicles, share revenue generated by the chips and eventually transfer ownership to Yotta after four to five years, Gupta said.
