Yotta Data Services Pvt., the Mumbai-based operator of India's largest cluster of Nvidia AI accelerators, is seeking to raise $500 to $600 million in a pre-IPO funding round at a valuation of approximately $4 billion, according to a Bloomberg report. The company plans to file its draft prospectus for an initial public offering (IPO) within weeks, aiming to raise a similar amount in the public listing.
The Deal
Yotta is in discussions with banks including Nomura Holdings, Goldman Sachs, ICICI Securities, and Kotak Securities to manage the IPO. The company has received in-principle approval for the listing and is awaiting final clearance from India's Securities and Exchange Board of India (SEBI). Potential investors in the pre-IPO round include sovereign wealth funds like Mubadala Investment Co. and several prominent Indian billionaire family offices. A Reuters report in February indicated Yotta had initially targeted $1.2 billion in this pre-IPO fundraising.
What the Company Does
Yotta operates as a data center and AI infrastructure provider, positioning itself as a domestic alternative to Western hyperscalers like Amazon Web Services, Google Cloud, and Microsoft Azure. Its core asset is its compute capacity, built around Nvidia's latest GPUs. The company currently operates about 10,000 Nvidia H100 chips. It plans to deploy thousands of the new Nvidia B200 units by May 2026, followed by an additional batch of more than 20,000 Nvidia B300 processors expected to go live by August. This expansion is part of a previously announced $2 billion investment.
Market Context
The fundraising and planned IPO occur against a backdrop of massive global investment in AI infrastructure. Just four hyperscalers—Amazon, Alphabet, Microsoft, and Meta—are planning to spend about $650 billion on capital expenditures this year, with significant portions dedicated to AI. In India, Prime Minister Narendra Modi's government has advocated for the country to become a competitive AI power, creating policy tailwinds for domestic infrastructure providers. Amazon and Alphabet have each committed to investing over $100 billion in capital expenditures this year, including AI infrastructure in India.
Yotta's attempt to go public follows a path similar to other AI infrastructure specialists like CoreWeave and Nebius Group, which have also attracted significant capital to build out GPU capacity. The company's valuation reflects the intense investor demand for assets tied to the physical compute layer of the AI stack, especially those with access to scarce Nvidia hardware.
