Excelsoft Technologies IPO Overview
Mysore-based EdTech SaaS leader raising ₹500 cr (₹180 cr fresh + ₹320 cr OFS). Price: ₹114-120. Lot: 125 shares (₹15,000 min). Funds for Mysore campus (₹61.77 cr), IT infra (₹54.64 cr). Listing: BSE/NSE Nov 26.
Lead: Anand Rathi. 59% revenue from Pearson alone – extreme client concentration risk. Competes with Blackboard, Coursera, D2L.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | Mainboard |
| IPO Open Date | 19 November 2025 (Wednesday) |
| IPO Close Date | 21 November 2025 (Friday) |
| Anchor Investor Bidding | 18 November 2025 (Tuesday) – Raised ₹150 cr from anchors |
| Allotment Date | 24 November 2025 (Monday) – Expected |
| Credit to Demat | 25 November 2025 (Tuesday) – Expected |
| Refund Initiation | 25 November 2025 (Tuesday) – Expected |
| Listing Date | 26 November 2025 (Wednesday) – Tentative |
| Price Band | ₹114 – ₹120 per share |
| Face Value | ₹10 per share |
| Lot Size | 125 shares |
| Min Investment (Retail) | ₹15,000 (1 lot of 125 shares at upper band) |
| Issue Size | ₹500 crore total |
| Fresh Issue | ₹180 crore (36%) – 1,50,00,000 shares |
| Offer for Sale (OFS) | ₹320 crore (64%) – 2,66,66,666 shares by promoters |
| Total Shares Offered | 4,16,66,666 equity shares |
| Listing | BSE & NSE (Mainboard) |
| Post-Issue Market Cap | ~₹1,381 crore (at upper price band) |
| P/E Ratio | ~35x (FY25 basis) |
| EPS | ₹3.47 (FY25 basis) |
| ROE | 10.38% (FY25) |
| ROCE | 16.11% (FY25) |
Issue Break-up
| Category | Allocation |
| QIB (Qualified Institutional Buyers) | 50% of Net Offer |
| NII (Non-Institutional Investors) | 15% of Net Offer |
| Retail Individual Investors | 35% of Net Offer (normal allocation) |
Selling Shareholder (OFS ₹320 crore)
Promoter Entity Selling 2,66,66,666 shares:
- Pedanta Technologies Private Limited – Promoter company (₹320 crore exit)
Promoter Individuals (Continuing):
- Dhananjaya Sudhanva (Chairman & Managing Director) – 38.81% stake
- Lajwanti Sudhanva (Non-Executive Director) – 11.75% stake
- Shruthi Sudhanva (Whole-Time Director)
Note: OFS represents 64% of total issue. Majority (64%) goes to promoter company exit, only 36% fresh capital to company.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹180 crore) will be used for:
- Purchase of Land & Construction of New Building at Mysore – ₹61.77 crore (34.3%)
- Acquiring land at Hootagalli Industrial Area, Mysore
- Constructing new campus for expansion and larger teams
- Upgradation of Existing Facility at Mysore – ₹39.51 crore (21.9%)
- External electrical systems upgradation
- Infrastructure improvements
- IT Infrastructure Upgradation – ₹54.64 crore (30.4%)
- Software, hardware, communications, network services
- Cloud infrastructure enhancement
- General Corporate Purposes – Balance amount (~13.4% or ₹24 crore)
- Working capital, strategic initiatives
Strategic Focus:
- Expand physical infrastructure to support growth
- Modernize IT capabilities for AI-driven platforms
- Strengthen technology backbone for global clients
- Support product development and innovation
OFS Proceeds (₹320 crore):
- Goes entirely to Pedanta Technologies Private Limited (promoter company)
- Company receives zero funds from OFS
Note: High OFS (64%) signals promoter exit rather than growth capital infusion.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- Anand Rathi Advisors Limited
Registrar:
- MUFG Intime India Private Limited (Link Intime India Private Limited)
- Phone: +91-22-4918 6270
- Email: [email protected]
- Website: https://in.mpms.mufg.com/Initial_Offer/public-issues.html
Promoters & Management
Key Promoters:
- Dhananjaya Sudhanva – Chairman & Managing Director (age 62)
- 38.81% stake (38,843,702 shares)
- Founder with 25+ years experience in EdTech
- Lajwanti Sudhanva – Non-Executive Director (age 57)
- 11.75% stake (11,756,225 shares)
- Shruthi Sudhanva – Whole-Time Director (age 35)
- Next-generation leadership
- Pedanta Technologies Private Limited – Corporate Promoter (Partial OFS participant)
Company History:
- 2000: Founded in Mysore by Dhananjaya Sudhanva
- 25 years: Experience in learning and assessment technology
- 2025: Expanding with IPO for infrastructure and IT upgradation
Company Contact:
- Registered Office: 1-B, Hootagalli Industrial Area, Mysore – 570018, Karnataka
- Phone: +91-821-4282247
- Website: www.excelsoftcorp.com
COMPANY OVERVIEW
Establishment & Background:
- Founded in 2000 (25 years of operations)
- Industry: Education Technology (EdTech) – Vertical SaaS for Learning & Assessment
- Headquarters: Mysore, Karnataka
- One of India’s leading global vertical SaaS companies in learning and assessment market
- Serving 200+ organizations impacting 30+ million learners worldwide
Business Model:
- End-to-end AI-powered learning and assessment SaaS platform for educational institutions, publishers, corporations, government agencies
- Product Suite:
- Test & Assessment Platforms: High-stakes exam delivery systems
- Online Proctoring Solutions: AI-powered remote invigilation (SARAS, EasyProctor)
- Learning Experience Platforms: Digital learning management (OpenPage, EnablED)
- Student Success Platforms: Tracking progress and engagement
- Digital eBook Platforms: Content delivery and management
- AI-Powered Applications: Automated grading, analytics, personalization
- Revenue Model: Long-term recurring contracts (SaaS subscriptions), implementation fees, customization services
- Value Proposition: Comprehensive lifecycle solutions (vs point products), AI-driven automation, regulatory compliance, global scalability
Market Position:
- Among leading global vertical SaaS players in learning & assessment niche
- 76 enterprise clients across 19 countries as of Aug 2025 (101 clients total including smaller accounts)
- Key clients: Pearson Education (59% revenue), AQA Education, Ascend Learning, Brigham Young University-Idaho, Colleges of Excellence, NxGen Asia
- 30 million learners impacted globally
- Operations in India, Malaysia, Singapore, UK, USA
Operations:
- 1,118 employees as of June 2025
- Facilities: Mysore headquarters + offices in Malaysia, Singapore, UK, USA
- Technology Stack: Cloud-based (AWS, Azure), AI/ML powered, API-driven
- Certifications: Compliance with global education and data security standards
- R&D Focus: 500+ engineering professionals, continuous product innovation
- Revenue Mix (FY25): Publishing sector 60.45%, Certification & Testing 17.55%, Others 22%
- Geographic Revenue (FY25): USA 60.45%, India 18.63%, Others 20.92%
Company Strengths
- 25-Year Legacy & Deep Domain Expertise in EdTech SaaS:
- Founded 2000 with quarter-century experience in learning & assessment technology
- Deep understanding of education lifecycle from K-12 to corporate training
- Product engineering expertise across assessments, digital learning, information management
- Trusted by 200+ organizations including top universities, publishers, government agencies
- Long-Term Sticky Client Relationships – 24 Clients for 10+ Years:
- 24 clients associated for 10+ years, 40 clients for 5+ years (Q1 FY26)
- Long-term contracts provide recurring revenue visibility and stability
- High customer retention reflects product quality and switching costs
- Diversified client base across publishing, certification, K-12, higher education, corporate training
- Strong Financial Turnaround – PAT +172% YoY (FY24 to FY25):
- FY25 PAT: ₹34.69 cr (+172% vs ₹12.75 cr FY24) – exceptional profitability improvement
- Revenue: ₹233.29 cr (+17.64% vs ₹198.30 cr FY24)
- EBITDA margin 31.4%, PAT margin 14.87% – healthy SaaS economics
- ROE 10.38% (vs 4.76% FY24), ROCE 16.11% (vs 11.03% FY23) – capital efficiency improving
- Debt-to-equity reduced to 0.05 – near debt-free balance sheet
- AI-First Product Innovation & Technology Leadership:
- AI-powered platforms for automated grading, proctoring (cheating detection), personalized learning
- SARAS and EasyProctor for remote exam monitoring using AI
- OpenPage and EnablED for digital learning management
- Continuous innovation keeping pace with EdTech evolution
- API-driven, cloud-native architecture ensuring scalability
- Global Footprint Reducing India Dependency:
- Operations in 5 countries (India, Malaysia, Singapore, UK, USA)
- 60.45% revenue from USA (FY25) – high-value market exposure
- Serving clients across 19 countries globally
- Geographic diversification reduces single-market risk
- Asset-Light SaaS Model – Scalable & High-Margin:
- Software-driven business with minimal physical assets or inventory
- Scalable infrastructure (cloud-based) allows rapid growth without proportional capex
- High gross margins typical of SaaS businesses
- Recurring revenue from subscriptions provides predictability
- Industry Tailwinds – Digital Learning & Assessment Boom:
- Global EdTech market growing rapidly post-COVID digital transformation
- Shift from traditional exams to online assessments accelerating
- AI adoption in education gaining traction
- Remote learning and hybrid models driving demand for platforms like Excelsoft’s
- Government and institutional investments in digital education infrastructure
Key Risks & Challenges
- Extreme Client Concentration – 59% Revenue from Pearson Alone:
- Pearson Education contributes ~59% of total revenue (FY25) – catastrophic dependency
- Top 5 clients: 66%, Top 10: 76%, Top 20: 89% of revenue – extreme concentration
- Loss of or reduced business from Pearson materially impacts financial performance
- Single client risk magnifies impact of contract non-renewals or pricing pressure
- No long-term binding agreements mitigate this risk
- High OFS (64%) – Promoter Exit Signal, Limited Fresh Capital:
- ₹320 cr (64%) OFS goes to promoter Pedanta Technologies vs ₹180 cr (36%) fresh
- Promoter company cashing out majority – signals potential valuation peak
- Limited fresh capital (₹180 cr) for growth initiatives
- Raises question: Why are insiders exiting if growth story strong?
- Client Attrition & Modest Revenue Growth (9% CAGR FY23-25):
- Lost 12 customers in FY24 (13% of base), 6 in FY25 (8%), 2 in Q1 FY26 (2%)
- Persistent attrition indicates competitive pressures or service gaps
- Revenue CAGR just 9% (FY23-25) – modest for high-growth SaaS sector
- Growth not matching global EdTech boom or SaaS industry standards (20-30%)
- Aggressive Valuation – P/E 35x vs Modest Growth:
- P/E of 35x (FY25 basis) – premium valuation for 9% revenue CAGR company
- Post-issue P/E over 2200x using H1 FY26 annualized (some reports) – astronomical if accurate
- Valuation appears stretched considering client concentration risk and growth rate
- Little margin of safety – any disappointment triggers correction
- Higher than mid-sized tech peers, justified only if growth accelerates significantly
- Industry Concentration – 78% Revenue from Publishing & Testing:
- 78% revenue from publishing and certification/testing sectors (Q1 FY26)
- Tied to these industries’ fortunes – downturn, budget cuts, or outsourcing reduction hurts business
- Lack of diversification across industries increases sector-specific risk
- Publishing industry facing disruption from open educational resources, AI content generation
- Forex Volatility & Agreement Validity Risks:
- 60% revenue from USA exposes to INR-USD currency fluctuations
- Adverse forex movements compress margins or reduce rupee realizations
- Unstamped/unregistered agreements with clients (per RHP) – enforceability questions
- Legal disputes or penalties possible if agreements challenged
- Compliance risk from informal documentation practices
- Intense Competition & Continuous Innovation Requirement:
- Competes with global EdTech giants: Blackboard, D2L, Moodle, Coursera, Inkling, Learnosity, Wheebox
- Listed peers: MPS Ltd, Ksolves, Silver Touch, Sasken, InfoBeans – some with higher scale
- Fast-evolving EdTech space requires continuous R&D investment
- Technology obsolescence risk if unable to keep pace with AI/ML advancements
- Low switching costs for clients – ease of migration to competitors
Disclaimer: This information is based on publicly available sources including SEBI RHP filings and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. The company has extreme client concentration (59% revenue from Pearson alone), high OFS (64%), modest revenue growth (9% CAGR), and P/E 35x valuation. Grey Market Premium of ₹16 (13% expected listing gain) is unofficial and volatile.
