Pure-play data analytics and insights company Course5 Intelligence Limited has filed DRHP for an IPO. Course5 Intelligence one of the leading pure-play data analytics and insights companies among the entities incorporated in India, is proposing an Initial Public Offering (IPO) of equity shares of face value of ₹ 5 each (“Equity Shares”) aggregating up to ₹ 600 crore (“Offer”).
The Offer comprises a fresh issue of Equity Shares aggregating up to ₹ 300 crore (the “Fresh Issue”) and an Offer For Sale (OFS) of Equity Shares aggregating up to ₹ 300 crore. The OFS comprises Equity Shares by Ashwin Ramesh Mittal aggregating up to ₹ 32.5 crore; Equity Shares by Riddhymic Technologies Private Limited aggregating up to ₹ 40 crore; Equity Shares by Riddhymic Technoserve LLP aggregating up to ₹ 40 crore; Equity Shares by AM Family Private Trust aggregating up to ₹ 112.5 crore (the “Promoter Selling Shareholders”) and Equity Shares by Kumar Kantilal Mehta aggregating up to ₹ 75 crore (the “Other Selling Shareholder”, and together with the Promoter Selling Shareholders, the “Selling Shareholders”) (the “Offer For Sale”). The company is promoted by Ashwin Ramesh Mittal, Riddhymic Technologies Private Limited, Riddhymic Technoserve LLP and AM Family Private Trust.
The company may consider a pre-IPO placement aggregating up to Rs. 60 crore prior to filing of the Red Herring Prospectus with the ROC. If such placement is completed, the fresh issue size will be reduced to the extent of such pre-IPO placement.
The Company proposes to utilise the Net Proceeds of the Fresh Issue towards funding:
Inorganic growth initiatives (Rs. 75 crore); Working capital requirements of the Company (Rs. 70 crore); Product and IP initiatives (Rs. 50 crore); Expansion of geographical footprint (Rs. 30 crore); and general corporate purposes.
Axis Capital and JM Financial are the book running lead managers (BRLMs) to the IPO. The focus of Course5 Intelligence is to help organizations drive digital transformation using artificial intelligence (“AI”), analytics and insights. Course5 Intelligence also has developed deep domain expertise in the technology, media and telecom (“TMT”), life sciences/ pharmaceuticals and consumer packaged goods (“CPG”) and retail verticals. The TMT, pharmaceuticals and CPG and retail verticals are expected to have significant tailwinds post the COVID-19 pandemic, specifically in data and analytics (Source: Zinnov Report). In addition, it also works in other industries such as financial services, utilities, automotive and industrial goods, and provide analytics and insights services in other areas such as risk, finance and operations in certain cases to clients.
Course5 Intelligence set up Course5 AI Labs in Bangalore and Toronto, that are AI-led innovation and research and development centres. It has a team of 29 dedicated AI scientists, as of September 30, 2021.
The overall analytics services market size was US$34 billion in 2020, which is expected to grow at a CAGR of 18.8% and reach US$ 67.7 billion in 2024. AI-led analytics services market was US$6.9 billion (accounting for 20% of the overall analytics addressed market) in 2020 and is expected to grow at a CAGR of 25.4% to reach US$17.0 billion (accounting for 25% of the overall analytics addressed market) by 2024. (Source: Zinnov Report).
Course5 Intelligence has ‘Fortune Global 500 2021’ and ‘Forbes The Global 2000 2021’ companies such as amongst others, Lenovo, Colgate-Palmolive Company, American Regent, Inc. (a member of the Daiichi Sanyo Group) and National Bank of Fujairah PJSC. It provided services to four out of the seven world’s largest companies by market capitalization as of November 30, 2021; four out of the top ten pharmaceutical companies in terms of net revenue in 2020; and two out of the five largest CPG companies in terms of net revenue in 2020 (Source: Zinnov Report). It services clients from the US, Europe and Rest of the World.
Course5 Intelligence has been engaged with Lenovo for over 10 years and its services have evolved to advanced and IP/AI led solutions. It is enrolled in Microsoft Partner Network Gold Competency membership and this membership recognizes its technical capabilities in Microsoft products or technologies in the data analytics domain. In addition, Course5 is a member of Intel’s AI Builders program.
Course5 Intelligence is supported by a strong leadership team and its employee base of 902 full-time employees spread across 17 cities globally, as of September 30, 2021. Course5 Intelligence trains its workforce through certain key training initiatives including ‘Course5 University’, which focuses on the diverse functional and technical, behavioural, leadership and compliance based training to enhance the skills and aid personal development and thereby prepare the employees to deal with current and future business requirements.
Course5 Intelligence has been recognized by the industry as leaders in AI and analytics, including by Forrester; and by Gartner. It has also received the ‘Best Financial Data Analysis Provider of the Year’ award by MEA Finance in 2021 and been recognized as among the ‘Top Data Science Providers in India 2021: Penetration and Maturity (PeMa) Quadrant’ by Analytics India Magazine.