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Excelsoft Technologies

• Excelsoft Technologies is coming out with a 100% book building; initial public offering (IPO) of 4,38,59,648 shares of 10 each in a price band Rs 114-120 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on November 19, 2025 and will close on November 21, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 11.40 times of its face value on the lower side and 12.00 times on the higher side.
• Book running lead manager to the issue is Anand Rathi Advisors. 
• Compliance Officer for the issue is Venkatesh Dayananda.

Profile of the company

Excelsoft Technologies is a global vertical SaaS company focused on the learning and assessment market. The global SaaS market has seen rapid growth, with vertical SaaS emerging as a dominant trend that promises specialized, industry-tailored solutions. This shift has positioned vertical SaaS to grow at an even faster pace than general SaaS, with estimates suggesting that vertical SaaS could account for nearly 50% of the SaaS market by 2030. With over two decades of experience, the company provides technology-based solutions across diverse learning and assessment segments through long-term contracts with enterprise clients worldwide. Its platforms are cloud-based with open and industry standards compliant APIs, ensuring scalability across organizations and users. Security and performance are core to its product offerings.

The company’s focus is on assessment market through its AI based Assessment & Proctoring Solutions. Qualifications and certification bodies, awarding and credentialing bodies, admission tests councils, corporates & government entities use its Saras eAssessment platform and easyProctor remote proctoring product to deliver high-stakes examinations and tests to their end users. Certification agencies such as The Chartered Quality Institute uses the platform to create and deliver online certification exams. For Pearson Professional Assessments Limited, its Company provides a comprehensive assessment platform using which large scale online, high stakes assessments are delivered in organisations including Government Agencies and Universities. Qualifications agencies such as Training Qualifications UK (TQUK) and AQA Education and higher education agencies such as Colleges of Excellence (Saudi Arabia) as well as school assessment boards use the assessment platform to create a variety of examinations on the platform and deliver them online. This includes question creation, test construction, delivery, marking, report generation and smart analytics.

Its learning systems offerings encompass a suite of platforms & solutions that help publishers manage digital online learning solutions including subscription management, digital asset management and analytics. Its SARAS Learning Management Systems (LMS), EnablED is the Learning Experience Platform (LXP) and digital interactive book system, OpenPage, provide learning support for various academic institutions & corporations for training, learning & development requirements. Publishers such as Ascend Learning LLC and Pearson Education Group use its learning platform to create learning programs and deliver them to end users in the academic sector. Excel Public School in India uses the learning platform and LearnActiv K-12 Learning Solutions products.

Proceed is being used for:

• Funding of capital expenditure for purchase of land and construction of a new building located at Hootagalli Village, Kasaba Hobli, Mysore Taluk, Mysore District
• Funding of capital expenditure for upgradation and external electrical systems of its existing facility at Mysore District, Karnataka
• Funding upgradation of the company’s IT Infrastructure (Software, hardware and Communications & Network Services)
• General Corporate purposes

Industry Overview

Software as a Service (SaaS) is a software distribution model in which a cloud provider hosts applications and delivers them to end-users via the internet. Unlike traditional software, which typically requires on-premises installation and upfront purchasing, SaaS allows users to access applications over the internet on a subscription basis. This model is powered by cloud computing, with software hosted on remote servers managed by a service provider, enabling users to leverage advanced technology without extensive infrastructure or maintenance. SaaS has found applications across diverse sectors, transforming business operations in industries such as finance, healthcare, education, and retail. In finance, SaaS solutions provide secure platforms for transaction processing and customer service management. In healthcare, SaaS enables secure data sharing, telemedicine, and patient management, while in education, it supports virtual learning and administrative functions. The global SaaS market was valued at $261.10 billion in 2024 and is expected to reach $733.72 billion by 2030, growing at a CAGR of 18.79% during the forecast period.

SaaS is transforming the banking, financial services, & insurance (BFSI) industry by offering scalable, flexible, and cost-efficient solutions that address the unique challenges of this sector. SaaS has become a cornerstone of innovation in the retail and e-commerce industries, providing businesses with the tools to scale efficiently, adapt to changing consumer behavior, and offer personalized, omnichannel experiences. Similarly, SaaS-based solutions in the healthcare industry aid in delivering scalable, cost-effective, and innovative solutions that improve patient care, streamline operations, and enhance data management. With robust market growth, increasing demand for digital healthcare services, and advances in cloud-based technologies, the future of SaaS in healthcare is promising. SaaS solutions have increased efficiency, collaboration, and real-time data-driven decision-making in the manufacturing industry. The integration of advanced technologies such as AI, IoT, and big data analytics is playing a pivotal role in reshaping manufacturing processes.

The global SaaS market has seen rapid growth, with vertical SaaS emerging as a dominant trend that promises specialized, industry-tailored solutions. Unlike horizontal SaaS, which offers generalized software applicable across various industries (such as CRM or project management software), vertical SaaS is customized for specific industries, addressing the unique needs of specific sectors. This approach allows companies to maximize efficiency, streamline workflows, and achieve industry-specific compliance, making vertical SaaS solutions particularly attractive to enterprises that require specialized functionalities. As more industries move toward digital transformation, companies seek cloud-based solutions that align with their distinct requirements. This shift has positioned vertical SaaS to grow at an even faster pace than general SaaS, with estimates suggesting that vertical SaaS could account for nearly 50% of the SaaS market by 2030. 

Pros and strengths

End-to-end expertise in learning and assessment: The company offers products and services that encompass the entire lifecycle of learning and assessment which are feature-rich, versatile and have the ability to work across the spectrum of organisations. It has expertise across the value chain of product and services in the field of learning and assessment market. It brings years of its product development and implementation experience aided by a thorough understanding of customer requirements thus envisioning, building and implementing suitable solutions in the education, training and learning space. By engaging with business leaders in a consultative approach to understand their business workflows and requirements right from the solution inception stage, it looks to create effective technology driven solutions for its customers and come up with the right blend of product that they may need. It develops and implements products that are built on the foundation of sound engineering principles, architecture best practices and user-centric design which are adept at understanding its client’s business requirements and implementing scalable, secure, reliable, and cost-effective cloud-based solutions.

Strong and long-term global customer relationships: Long-term relationships with customers are a critical strength for any business, offering significant competitive advantages and fostering sustainable growth. When managed effectively, these relationships can contribute to stable revenue streams, brand loyalty, and global market presence. This stability allows for better financial planning, forecasting, and resource allocation. One of its strengths is its long-term relationship with its global customers. Unwavering focus on customer relationships and its ability to think alongside them enables it to add value at every step of its engagement with them. Being sensitive to customer objectives, empathizing with customer’s end users, understanding customer pain points coupled with its consulting and solution design abilities takes it to the next level of partnership with its customers. The company has its clientele spread across various parts of the globe including but not limited to countries like USA, UK, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, UAE and Canada. Most of its global customers have been associated with it for long duration. This is because of the trust that they have on its products and services over the years. Its products and services have ensured that it maintains a healthy and long-term trustworthy business relations with its global customers ensuring a growth to its business and global footprint.

Worldwide operations with focus on scalable learning solutions: The company has its subsidiaries located in UK, USA, Singapore and India, along with its presence in Dubai catering to customers across such jurisdictions. The ability to serve global clients and deliver fully compliant digital learning solutions is a significant strength for any organization, especially in the rapidly evolving education and corporate training sectors. As businesses and educational institutions look to digital learning to upskill employees, engage learners, and comply with various regulations, offering solutions that are both scalable across geographies and fully compliant with global standards is a key competitive advantage. The demand for upskilling and reskilling is a significant trend reshaping the global Learning & Development (L&D) market, driven by rapid technological advancements, shifting workforce needs, and evolving business models.

Right-fit solutions through technological flexibility: Flexibility to work with diversified technologies to provide the right-fit solution, driven by agile methodologies, is a powerful strength for any organization, especially in today’s rapidly evolving technological landscape. The company’s solutions are built after a thorough requirement gathering exercise based on which, it configures and customises the platform to meet specific customer requirements. The platform is comprehensive with support to variety of question types, workflows, testing algorithms, grading schemes, report formats etc. This comprehensive feature set coupled with the customizability enables it to provide right-fit solutions for a wide range of assessments such as admission tests, certification exams, skills assessments, test preparation, K-12 formative exams and university summative exams.

Risks and concerns

Customer concentration risk in key industry verticals: A substantial portion of the company’s customers are concentrated in a few specific industry verticals, namely the publishers and certification & testing agency verticals. In the three months period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, 78.03%, 78.00%, 67.07%, and 70.03% of its revenue was derived from contracts with its customers in these verticals alone. The company’s business growth largely depends on continued demand for its services from customers in these industry verticals. A downturn in any of its targeted industry verticals, a slowdown or reversal of the trend to outsource IT services in any of these industries or the introduction of regulations that restrict or discourage companies from outsourcing could result in a decrease in the demand for its services and adversely affect its business, financial condition and results of operations.

Significant exposure to a limited number of key customers: The company is dependent on its key customers for a significant portion of its revenues. Its top 5, top 10 and top 20 customers contributed to 66.12%, 76.58% and 89.44%, respectively, of its revenue from operations in Fiscal 2025. Any decrease in revenues from any of its key customers or any loss of these customers may adversely affect its business, financial condition, cash flows and results of operations.

Significant geographic concentration risk in the U.S. market: The company’s business subjects it to risks in multiple countries where subsidiary companies and its customers are situated. It has derived 60.61%, 3.11%, 24.09% of its revenue for the three months period ended June 30, 2025, 60.45%, 3.19%, 21.47% of its revenue for Fiscal 2025, 55.00%, 10.05%, 19.98% of its revenue for Fiscal 2024 and 63.12%, 8.17%, 15.42% of its revenue for Fiscal 2023 from clients located in the United States of America, Singapore and the United Kingdom, respectively. As the company is highly dependent on generating revenue from clients located in the United States of America, any adverse developments in this market may result in the company losing customers in the United States of America, which could adversely affect its business and results of operations.

Potential adverse impact from inability to retain or attract customers: The company’s ability to retain the customers is heavily dependent upon various factors including its reputation and its ability to maintain a high level of service quality including its satisfactory performance for the customers. During the three months period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 it has lost 2, 6,12 and 15 number of customers forming 2%, 8%, 13% and 16% of its total customer base, respectively. Any failure by it to retain or attract customers may impact its business and revenues.

Outlook

Excelsoft Technologies is a global vertical SaaS company specialising in the learning and assessment market. The company provides AI-powered applications, test and assessment platforms, online proctoring solutions, learning experience platforms, student success platforms, and digital eBook platforms. The company has expertise in product engineering, development and implementation across assessments, digital learning & information management systems with robust product capabilities. On the concern side, the company’s revenues are highly dependent on a limited number of industry verticals, and any decrease in demand for outsourced services in these industry verticals could reduce its revenues and adversely affect its business, financial condition and results of operations. Moreover, the company is highly dependent on generating revenue from clients located in the United States of America, any adverse developments in this market may result in the company losing customers in the United States of America, which could adversely affect its business and results of operations.

The issue has been offering 4,38,59,648 shares in a price band of Rs 114-120 per equity share. The aggregate size of the offer is around Rs 500.00 crore to Rs 526.32 crore based on lower and upper price band respectively. Minimum application is to be made for 125 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 17.65% from Rs 1,982.97 million in Fiscal 2024 to Rs 2,332.91 million in Fiscal 2025, an increase of Rs 349.94 million. Moreover, the company recorded an increase of 172.02% in its profit for the year from Rs 127.53 million in Fiscal 2024 to Rs 346.91 million in Fiscal 2025, an increase of Rs 219.38 million.

Currently, the company has its clientele spread across various parts of the globe across various countries including but not limited to countries like USA, UK, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, UAE, Italy and Canada. As an emerging market, its strategy is to reach out to more geographies across the globe and create a more diversified clientele. As a team, it studies the pattern and the growth of the industry wherein the company operating and analyse the untapped market wherein it has a potential to enter and sustain the stiff competition. Based on such study and research by its team, it intends to shortlist and explore the possible opportunities available in specific untapped geographies, keeping in mind the ease of setting up a business, accessibility, client outreach, availability of human resource and financial viability. Its strategy is to ensure that it enhances its revenue from its already existing customers by catering to their ever evolving needs and also to ensure that it reaches out to new customers across the globe to increase its clientele by expanding its presence into the existing geographies and also enter into newer potential geographies.