Servify shoots for unicorn tag with $100 million fundraise

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Subscribe to enjoy similar stories. Mumbai: Smartphone care and warranty provider Servify is in early talks with venture capital and private equity firms to raise $100 million, before it joins the swelling crowd of startups rushing to the public markets. The Mumbai-based startup is eyeing the fundraise at a potential valuation of $1 billion, as it prepares for an initial public offering of shares in 24 months, said two people with knowledge of the development, requesting not to be identified.

Servify has mandated Kotak Investment Bank for the fundraise, one of them said, adding that the startup, which already has a significant overseas presence, will likely use the fresh capital to expand to new markets. “This is a (fundraising) round prior to the pre-IPO one. It is largely primary with some secondary where a few early investors might cash out," the second of the two persons said.

“We might see some Esop (employee stock ownership plan) buyback also as part of the secondary sale." Employees of unlisted startups made a tidy sum from their ownership of employee stock options (Esops) in 2024, with 26 such companies buying back the Esops in pre-listing and secondary transactions. Data analyzed by equity management platform Qapita showed the number was 19 in 2023, but was higher at 37 startups each in 2021 and 2022, Mint reported in December last year. Late-stage funding, too, saw a revival in 2024, with $5.4 billion raised from 85 rounds compared to $5.1 billion from 75 rounds a year ago, according to data from Tracxn.