Excelsoft Technologies, a leading global vertical SaaS company specializing in learning and assessment solutions, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is set to launch its Initial Public Offering (IPO), which will consist of a combination of a Fresh Offer and an Offer for Sale (OFS), aggregating to INR 700 crore. Excelsoft Technologies IPO will be managed by Anand Rathi Advisors as the Book Running Lead Manager (BRLM), and MUFG Intime India Private will act as the Registrar to the Offer.
Excelsoft Technologies IPO: Company Overview
Excelsoft Technologies is a global leader in digital learning and assessment solutions. It provides AI-driven proctoring and assessment technologies catering to enterprise clients, certification bodies, and academic institutions. The company has over two decades of experience in the learning and assessment sector and serves 71 clients across 17 countries.
Excelsoft is focused on artificial intelligence (AI) and machine learning (ML) integration into its products, including Large Language Models (LLM) and AI-driven Learning Experience Platforms (LXPs).
Excelsoft Technologies IPO: Key Details
- Fresh Offer: Up to INR 210 crore
- Offer for Sale (OFS): Up to INR 490 crore
- Total Offer Size: Up to INR 700 crore
Details of the Selling Shareholders
- Pedanta Technologies: Offering up to INR 340 crore worth of shares.
- Dhananjaya Sudhanva: Offering up to INR 150 crore worth of shares.
The weighted average cost of acquisition per share is INR 48.20 for Pedanta Technologies Private and INR 0.11 for Dhananjaya Sudhanva.
Excelsoft Technologies IPO: Use of Net Proceeds
The proceeds from the Fresh Offer will be allocated as follows:
- Capital Expenditure: Purchase of land and construction of a new building at the Mysore property – INR 71.97 crore.
- Facility Upgradation: External electrical system upgrade at the existing Mysore facility – INR 39.51 crore.
- IT Infrastructure Enhancement: Investment in software, hardware, and network services – INR 54.64 crore.
- General Corporate Purposes: Amount yet to be specified.
Excelsoft Technologies IPO: Financial Performance
The company’s financial performance in recent years has been strong but shows fluctuations in profitability:
| FY 2022 | FY 2023 | FY 2024 | H1 FY2025 | |
| Revenue | 157.85 | 195.10 | 198.30 | 108.50 |
| EBITDA (%) | 42.21 | 34.94 | 27.72 | 24.48 |
| Net income | 19.11 | 22.41 | 12.75 | 4.66 |
| Margin (%) | 12.11 | 11.49 | 6.43 | 4.29 |
| Net Worth | 255.05 | 278.08 | 297.30 | 341.19 |
| Debt/Equity | 0.50 | 0.37 | 0.24 | 0.02 |
| ROCE (%) | 11.32 | 11.03 | 7.59 | 5.54* |
Industry Overview
Excelsoft Technologies operates in the rapidly growing global learning and assessment market. The vertical SaaS industry is experiencing significant growth, with specialized learning solutions becoming the norm across educational institutions and corporations. According to the Arizton Report, vertical SaaS is expected to account for nearly 50% of the SaaS market by 2030, positioning Excelsoft Technologies favorably for expansion.
Conclusion
Excelsoft Technologies IPO presents an opportunity for investors to participate in the fast-growing vertical SaaS and EdTech sector. With a strong global presence, an established client base, and a focus on AI-driven assessment and learning solutions, the company is well-positioned for future growth. However, potential investors should carefully evaluate the risks associated with the offering, including market volatility and the company’s fluctuating profit margins.