IPO Alert: All you need to know about Course5 Intelligence’s upcoming IPO

Data & Analytics is one of the fastest-growing segments of digital spending. The market for data & analytics was estimated at $174 billion in 2020 and is expected to grow at a compound annual rate of 17.6% to approximately $333 billion by 2024. The total value of the AI-led advanced analytics market was approximately $67 billion in 2020, which is expected to grow about 27% to $173 billion by 2024.

Overall, the Indian analytics services delivery market is estimated to grow about 20% through 2024, while the AI-led analytics services delivery market is estimated to grow 28% during that period.

Course5 Intelligence Ltd recently filed preliminary documents with market regulator SEBI to raise ₹600 crore through an initial share sale. The public issue comprises a fresh issue of shares aggregating up to ₹300 crores and an offer for sale of shares worth ₹300 crores. The company may consider a pre-IPO placement of up to ₹60 crores. If such placement is completed, the size of the fresh issue will be reduced.

Course5 Intelligence plans to use ₹75 crores from the net proceeds to fund its inorganic growth initiatives. The company will use ₹70 crores to fund working capital requirements for the 2023-2025 period. Further, it intends to deploy ₹50 crores for funding product and IP initiatives, while the remaining amount will be used for general corporate purposes.

Data Analytics & AI

Course5 Intelligence is one of the leading pure-play data analytics and insights companies in India, focusing on helping organizations drive digital transformation using artificial intelligence, analytics and insights.

The Mumbai-based company, which offers digital analytics and marketing & customer analytics services, has significant expertise in the analytics for digital, direct-to-consumer and omnichannel models. It covers areas such as supply chain, enterprise AI and social media analytics & insights.

As of September 30, 2021, the company had 902 full-time employees spread across 17 cities globally. Its clientele includes Lenovo, Colgate-Palmolive Company, American Regent, Inc and the National Bank of Fujairah PJSC.

The company faces competition from two main business categories — large multi-service IT providers like Accenture, Tata Consultancy Services, Genpact, EXL Service and Larsen & Toubro Infotech Limited; and pure-play analytics players like Tiger Analytics, Fractal Analytics, LatentView Analytics, ThoughtSpot and Palantir.

Key Figures

Course5 Intelligence reported revenue of ₹143 crores for the six months ended September 30, 2021, which is up 28% from the prior-year period. Net profit was ₹27 crores, which is lower compared to ₹31 crores recorded in the same period of the previous year.