2025-01-23 05:30:00 :
MUMBAI: Smartphone care and warranty provider Servify is in early talks with venture capital and private equity firms to raise $100 million before joining the throng of startups flocking to the public markets.
The Mumbai-based startup plans to raise capital at a potential valuation of $1 billion and prepare for an initial public offering within 24 months, two people familiar with the matter said on condition of anonymity.
Servify has tasked Kotak Investment Bank with financing, one of the people said, adding that the startup, which already has a large presence overseas, may use the new funds to expand into new markets.
“This is a pre-IPO (fundraising) round. It’s mostly junior, with some secondary where some early investors may cash out,” the second of the pair said. “We may see some Esop (employee stock ownership plan) buybacks as part of secondary sales as well.”
Employees at privately held startups made a fortune from the employee stock options (Esops) they owned in 2024, with 26 such companies buying back Esops in pre-IPO and secondary transactions. Mint reported in December that data analyzed by equity management platform Qapita showed that the number was 19 in 2023, but 37 in 2021 and 2022.
Funding History
Late-stage funding also recovered in 2024, reaching $5.4 billion in 85 rounds, compared with $5.1 billion in 75 rounds a year ago, according to Tracxn. Much of this recovery has occurred on the back of early IPO rounds, which are a mix of primary and secondary deals.
Servify is backed by venture investor Iron Pillar, asset manager Singularity Growth Opportunity Fund and investment firm Bajaj Holdings, among others.
The startup raised $65 million in 2022 as part of a Series D round led by Singularity Growth, AmTrust and Pidilite sponsor family offices, which valued it at about $850 million at the time. Last year, Servify raised $10 million in debt. The startup was founded in 2015 and has raised approximately $135 million to date.
Servify founder and CEO Sreevathsa Prabhakar declined to comment on fundraising plans. one A Kotak spokesperson did not respond Mint Query.
Servify operates globally, including in North America, the European Union, the United Kingdom, Türkiye and the United Arab Emirates. Founded by Prabhakar, Servify provides damage protection, extended warranty and trade-in services to users of Apple, Samsung, Xiaomi, OnePlus, Nokia and other devices.
Servify’s revenue in 2023-24 jumps to $759 Crores Rs. $It was Rs 611 crore last year, Tracxn data showed. Its losses also narrowed significantly to $940 million in FY24, from $229 crore in the previous year.
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