Yotta Data Services IPO: ₹6,000-8,000 Crore Fundraise Planned For AI Infrastructure Expansion

Yotta Data Services is preparing to file its draft red herring prospectus (DRHP) for an initial public offering (IPO). The Hiranandani Group-backed data centre company plans to raise around ₹6,000-8,000 crore through the issue.

The company is also targeting a total fundraising of ₹15,000 crore through a mix of pre-IPO funding and the IPO. The Yotta Data Services IPO is expected to draw attention as the company expands its artificial intelligence (AI) infrastructure business.

The Mumbai-based company has already started work on the IPO. Due diligence is underway, and Kotak Mahindra Capital, ICICI Securities, and SBI Capital Markets have been appointed as book-running lead managers.

Yotta Co-founder, CEO, and Managing Director Sunil Gupta said the DRHP is almost ready and could be filed in the next few weeks, subject to regulatory approvals and other requirements.

Yotta has already raised around $150 million (₹1,500 crore) from high-net-worth individuals (HNIs) and family offices. The round valued the company at about ₹37,000 crore. Gupta said this was only a small part of the planned fundraising and that Yotta is now in talks with larger institutional and sovereign wealth investors.

Where Will The Yotta IPO Proceeds Be Used?

The fundraising comes as Yotta prepares for a major expansion across data centres, sovereign cloud, and AI infrastructure. The company plans to use fresh capital to add data centre capacity, expand cloud and managed services, and invest in AI infrastructure, including graphics processing units (GPUs) and cooling systems.

Yotta has said it expects to spend billions of dollars on its three business lines as demand for computing capacity rises. The company has also been scaling its AI infrastructure business to serve customers in India and overseas.

Its colocation business remains the core operation, while sovereign cloud is being developed for enterprises and government customers. Gupta expects both businesses to grow at roughly 25% a year, with sovereign cloud potentially reaching an annual revenue run rate of about $300 million from government customers alone.

How Is Yotta Reducing The Risk Of GPU Investments?

Yotta is also changing how it invests in AI hardware. Instead of buying GPUs based on expected demand, the company is increasingly deploying capacity against customer contracts. Some customers have signed five-year “take-or-pay” agreements, giving Yotta a clearer path to recover its investment.

Around 80% of Yotta’s current GPU capacity is being used by customers in the US and Europe. The company plans to increase its GPU inventory to about 85,000 by the end of FY27.

The planned IPO would give Yotta another source of capital as it expands its AI and data centre operations while reducing its dependence on bank loans and internal cash generation.

Investors will also be watching out for the Yotta Data Services IPO date once the company files its DRHP.

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