Celebal Technologies Secures Rs 125 Crore in Series B Funding Round

Celebal Technologies is set to secure Rs 125 crore, approximately $14.7 million, in its Series B funding round, spearheaded by InCred Growth Partners Fund, with backing from existing investor Norwest Venture Partners.

Previous Funding Rounds

In June of the previous year, Celebal Technologies successfully raised Rs 80 crore through debt financing from BlackSoil, following its substantial $32 million Series A funding achieved in November 2022.

Details of the Series B Round

As reported in official filings from the Registrar of Companies (RoC), the board of Celebal Technologies has approved the issuance of 1,04,000 Series B Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 12,019 each to secure the targeted funding amount.

InCred Growth Partners Fund is set to lead this financing round with an investment of Rs 80 crore, equivalent to $9.4 million. Additionally, Norwest Venture Partners intends to contribute Rs 45 crore, which amounts to $5.3 million, in order to increase its ownership stake in the company.

Utilisation of Funds

The proceeds from this funding round will be allocated towards expanding operational activities, fulfilling working capital requirements, and addressing general corporate needs.

Company Overview

Founded in 2015, Celebal Technologies is a software services company dedicated to driving digital transformation through generative AI, machine learning, cloud integration, and application modernisation. The firm provides services to clients globally, including those in the USA, India, APAC, UAE, Europe, and Canada.

Valuation and Stake Data

Following this funding allocation, the valuation of the Jaipur-based company is estimated to have nearly doubled, reaching Rs 1,795 crore, or $211 million, according to Startup Superb’s assessments.

As per various startup data sources, Norwest Venture Partners is positioned to retain the largest external ownership, totalling 28.83%, while newcomer InCred is anticipated to hold a 4.46% stake in the business.

Financial Performance

In the financial year ending March 2024, Celebal Technologies reported a notable 43% year-on-year increase in operating revenue, amounting to Rs 275 crore. However, its losses escalated to Rs 60 crore from a mere Rs 1.3 crore the previous year. It is significant to note that the Norwest Ventures-supported firm attained profitability in FY22, recording a profit of Rs 21.6 crore.