Servify raises Rs520 crore in its latest round, plans an IPO in 2 years

25 Aug 2022 , 08:00 AM

Servify, a firm that oversees the device lifecycle for numerous smartphone OEMs across numerous geographies, announced on Wednesday that it has raised about Rs520 crore in a round that was primarily led by Singularity Growth Opportunity Fund.

According to the startup’s founder Sreevathsa Prabhakar, it raised the funds at a valuation of just under $1 billion and would have become a “unicorn” after this round alone if not for some onerous requirements set by investors. The startup, which provides services to well-known brands like Samsung and Apple, has raised money from investors.

Because it intends to go public through an Initial Public Offering (IPO) in the next 18 to 24 months, it has purposefully sought out local investors for funding in this round, he said. He added that family offices like Pidilite’s as well as current investors Iron Pillar, BEENEXT, Blume Ventures, and DMI Sparkle Fund are among the investors in the new round. He also mentioned the possibility of raising an additional USD 5-7 million in the coming month to close the round at USD 70 million.

According to Prabhakar, the six-year-old business is currently generating over USD 130 million in yearly revenue and will become profitable in the following two months. Therefore, there wasn’t a need for cash per se, but the round was completed with the idea of eventually going public, he explained, noting that this listing will take place once the company has been profitable for more than 15 months.

Currently, local sales account for 60% of company revenue, with the remaining 40% coming from international sales, he claimed. As it expands the network to other nations and widens its reach in the 40 nations it already works in, foreign revenues will account for 90% of total sales within the next two years.

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