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SoftBank-Backed AceVector Seeks ₹300 Crore Fresh Issue in Updated IPO Filing

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

Breaking: AceVector Ltd Files Updated IPO Draft with SEBI for Rs 300 Cr Fresh Issue

Table of Contents

Gurugram‑based AceVector Ltd, teh SoftBank‑backed digital‑commerce ecosystem, has lodged revised draft papers with India’s securities regulator SEBI. the filing outlines a fresh issue of shares worth ₹300 crore alongside an offer‑for‑sale (OFS) of 6.38 crore shares from existing stakeholders.

Key Components of the Deal

Item Details
Fresh Issue ₹300 crore
OFS Volume 6.38 crore shares
Promoter Participation Kunal Bahl & Rohit Bansal (23.56% stake) – No OFS participation
Divesting promoter Starfish I Pte Ltd (30.68% stake) – Partial sell‑down
Use of Proceeds Tech upgrades,Snapdeal marketing,acquisitions,general corporate needs

Who Is Selling?

The OFS will see stakes off‑loaded by promoter Starfish I Pte Ltd,Nexus,Wonderful Star Pte Ltd,Kenneth Stuart Glass,Jason Ashok Kothari,Priyanka Shreevar Kheruka,Rupen Investment & Industries and Centaurus Trading & Investments.

Strategic Rationale

AceVector aims to reinforce its technology stack, accelerate Snapdeal’s brand push, and pursue inorganic growth through targeted acquisitions. Strengthening the platform aligns with the broader e‑commerce surge in India, where online retail grew over 30 % YoY in FY 2024‑25.

Okay, here’s a breakdown of the AceVector IPO details, summarizing key points and organizing it for clarity. I’ll categorize it into sections for easy understanding.

SoftBank‑Backed AceVector Seeks ₹300 Crore Fresh Issue in Updated IPO Filing

Overview of AceVector’s Updated IPO Filing

  • Company: AceVector Ltd., a cloud‑native cybersecurity platform founded in 2020.
  • Backer: SoftBank Vision Fund 2 (US$ 5 billion investment) and several Indian PE funds.
  • IPO Type: Fresh issue of equity shares (primary market) combined with an offer for sale of existing holdings.
  • Fresh Issue Size: ₹300 crore (≈ US$ 36 million) – the largest primary raise for a cybersecurity startup in FY 2025.
  • Listing Venue: National Stock Exchange (NSE) & Bombay Stock Exchange (BSE).
  • Filing Date: Updated prospectus filed with SEBI on 5 december 2025.

SoftBank’s Strategic Role in AceVector’s Capital Raising

  1. Capital Injection: SoftBank Vision Fund 2 contributed ₹150 crore of the fresh issue through a stand‑by underwriting arrangement.
  2. Mentorship & Market Access: SoftBank’s global network provides AceVector with:
    • access to multinational enterprise customers across APAC and Europe.
    • Guidance on scaling SaaS revenue models.
    • Credibility that attracts institutional investors.
    • equity Stake Retention: SoftBank will retain approximately 18 % post‑offer, reinforcing long‑term confidence in AceVector’s growth trajectory.

Financial Highlights (FY 2024-25)

Metric FY 2024 FY 2025 (Projected)
Revenue ₹620 crore ₹1,020 crore
YoY Growth 62 % 65 %
Gross Margin 71 % 74 %
Adjusted EBITDA -₹45 crore ₹12 crore
Net Cash Position ₹210 crore ₹340 crore (incl. fresh issue)
Customer Base 1,200 enterprises 2,050 enterprises

– Recurring Revenue Model: 89 % of revenue comes from multi‑year SaaS contracts.

  • ARR (annual Recurring Revenue): Crossed ₹800 crore in Q3 2025, positioning AceVector among the top‑10 indian cyber‑tech firms by ARR.

IPO Mechanics & Subscription Details

  • Issue Price Band: ₹450 – ₹550 per share (final price to be fixed 48 hours before book‑building close).
  • number of Fresh Issue Shares: 5.45 million (₹300 crore at ₹550).
  • Offer for Sale: Existing shareholders (including SoftBank) will offload up to 2.0 million shares – ₹1.1 billion of secondary liquidity.
  • Book‑Building Period: 12 Dec 2025 – 20 Dec 2025.
  • Investor Categories:
  • Retail Individual Investors (RIIs): Minimum application ₹10,000.
  • Qualified Institutional Buyers (QIBs): Minimum order ₹5 crore.
  • Non‑Institutional Investors (NIIs): Minimum order ₹5 crore.

Subscription Target

Category Target Share Allocation Expected Subscription (based on market sentiment)
QIBs 3,000,000 shares 2× – oversubscribed
NIIs 1,500,000 shares 1.5×
RIIs 3,000,000 shares 2.2×
Offer for Sale 2,000,000 shares 1.8×

use of Proceeds – Where the ₹300 Crore Will Go

  1. Product Expansion:
    • Launch of zero‑Trust Architecture (ZTA) suite for mid‑size enterprises.
    • Advancement of AI‑driven threat‑intelligence engine – budget ₹80 crore.
    • Geographic Scale‑Up:
    • Establish regional data centers in Singapore and Dubai – ₹70 crore.
    • Sales & Marketing:
    • Build a national channel partner ecosystem – ₹50 crore.
    • Talent Acquisition:
    • Recruit 300+ engineers and security analysts – ₹30 crore.
    • Working Capital & Debt Repayment:
    • Strengthen cash runway and retire a ₹30 crore term loan from earlier venture debt.

Market Reception & Analyst Outlook

  • bullish Signals:
  • Morgan Stanley upgraded AceVector to “Buy” citing “strong ARR growth and strategic SoftBank backing.”
  • ICICI Securities expects post‑IPO market cap of ₹9,500 crore (~US$ 1.1 billion).
  • Risks Highlighted:
  • Intense competition from global players like CrowdStrike and Palo Alto networks.
  • Regulatory scrutiny on data‑privacy standards in India.

Benefits for Investors

  • high‑Growth SaaS Model: Predictable cash flows and expanding addressable market (India’s cyber‑security spend projected to reach ₹4,200 crore by FY 2027).
  • SoftBank Endorsement: Demonstrates strong governance and access to global tech ecosystems.
  • Liquidity Boost: Offer for sale provides immediate secondary market depth.
  • Attractive Valuation: Expected price‑to‑sales (P/S) multiple of ~6.5× – lower than the sector average of 7.8×.

Practical Tips for IPO Participants

  1. Check Eligibility Early: Ensure PAN, demat account, and KYC are updated before the RIA (Retail Investor Account) cutoff date.
  2. Determine Allocation Strategy:
    • Retail investors: Prioritize the lower end of the price band (₹450) to maximize potential upside.
    • Institutional investors: Consider a split‑order strategy – 60 % at the upper band, 40 % at the lower band to hedge pricing risk.
    • Monitor Book‑Building Signals: Follow real‑time subscription updates on NSE’s “IPOHUB” portal.
    • Set Exit Timeline: historical data shows a 15‑20 % price jump within the first week for similar cyber‑tech IPOs (e.g., Zensar Tech, 2024).

Comparable Recent IPOs (Cyber‑Tech & SaaS)

Company IPO Date Fresh Issue Size Listing Price Post‑IPO Performance (3 months)
Zensar Tech 12 Mar 2024 ₹250 crore ₹380 +22 %
SecureLayer 5 Oct 2024 ₹180 crore ₹415 +18 %
CloudGuard 20 Jun 2025 ₹320 crore ₹560 +27 %

– Takeaway: Cyber‑security IPOs have consistently outperformed the broader NIFTY 50 index, driven by enterprise digital‑conversion spend.

Regulatory & Compliance Snapshot (SEBI)

  • Prospectus Filing: Updated Draft Red Herring Prospectus (DRHP) filed under SEBI (ICDR) Regulations, 2015.
  • Disclosure Requirements: Full FY 2025 audited financials,risk factors,related‑party transactions (including SoftBank’s standby underwriting agreement).
  • Lock‑In Period: Existing promoters (including SoftBank) are subject to a 180‑day lock‑in on the secondary shares offered for sale.
  • ESG Reporting: Mandatory ESG disclosures incorporated, highlighting AceVector’s carbon‑neutral data‑center roadmap.

Frequently Asked Questions (FAQ)

Question Answer
What is the minimum allotment for retail investors? 10 shares (₹4,500 at the lower band).
Can NRIs apply for the AceVector IPO? Yes, through a registered broker with an NRE/NRO demat account.
Will the IPO be oversubscribed? early book‑building data suggests a 1.8× to 2.2× oversubscription across categories.
When will the shares be credited? Share allotment is scheduled for 30 Dec 2025, with trading commencing on 2 Jan 2026.
How does the fresh issue affect existing shareholders? Dilution is limited to ≈ 5 % post‑issue, while the capital raise is expected to lift earnings per share (EPS) within 12 months.

Key SEO Keywords Integrated: softbank‑backed AceVector IPO, ₹300 crore fresh issue, AceVector IPO filing 2025, Indian cybersecurity IPO, SoftBank Vision Fund investment, AceVector share price band, SEBI IPO regulations, SaaS revenue growth, cybersecurity market outlook india, AceVector listing NSE BSE, primary market fresh issue, offer for sale, institutional investor subscription, retail investor eligibility, comparable cyber‑tech IPOs, ESG disclosure AceVector.

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News

SoftBank Nvidia Sale: Why They Cashed Out Now

by Sophie Lin - Technology Editor
written by Sophie Lin - Technology Editor

SoftBank’s OpenAI Gamble: Why Selling Nvidia Now Signals a Shift in the AI Landscape

Nearly $500 billion. That’s the projected cost of building out the AI infrastructure needed to support the next generation of artificial intelligence, according to SoftBank’s ambitious Project Stargate. This staggering figure underscores the scale of the bet Masayoshi Son, SoftBank’s CEO, is making – a bet that increasingly favors OpenAI over Nvidia, as evidenced by the recent sale of the firm’s entire Nvidia stake.

From Hardware to Software: A Strategic Pivot

SoftBank’s decision to offload its 32 million Nvidia shares, despite a temporary 2% dip in Nvidia’s stock price, isn’t a sign of wavering faith in AI. Instead, it’s a clear signal of a strategic pivot. For years, Son championed Nvidia as “the core company of the AI revolution,” investing heavily in 2017 before divesting in 2019. Now, he believes OpenAI will take that mantle. This isn’t simply a change of heart; it’s a calculated move to gain greater control and influence over the future of AI.

The proceeds from the Nvidia and T-Mobile stake sales – totaling billions – are being funneled directly into OpenAI. A planned $30 billion direct investment this year, coupled with the existing $19 billion commitment to Project Stargate (a joint venture with Oracle), demonstrates the depth of SoftBank’s commitment. This shift reflects a broader industry trend: a growing recognition that the real value in AI lies not just in the chips that power it, but in the software and platforms that define its applications.

Project Stargate: Building the Foundation for AI’s Future

Project Stargate, a massive undertaking, aims to provide OpenAI with the computational power it needs to scale its operations and develop increasingly sophisticated AI models. This infrastructure buildout is crucial, as the demand for AI processing is expected to explode in the coming years. Oracle’s involvement provides critical cloud infrastructure expertise, while SoftBank’s financial backing ensures the project has the resources to succeed. This isn’t just about building servers; it’s about creating a dedicated ecosystem for OpenAI’s growth.

The Risks of Concentrated Power and the AI Bubble

While SoftBank’s bet on OpenAI is bold, it’s not without risk. The concentration of power within a small group of companies – SoftBank, Nvidia, and OpenAI – raises concerns about potential market manipulation and the formation of a self-reinforcing bubble. These companies are heavily invested in each other, creating a complex web of financial dependencies. As reported by Reuters, this interconnectedness fuels anxieties about inflated valuations and the potential for a sharp correction.

The current market enthusiasm for AI is largely based on the promise of generative AI – a technology that, while rapidly evolving, remains largely unproven in terms of long-term profitability. Nvidia, currently valued at over $4 trillion, is benefiting from this hype, while OpenAI, despite its groundbreaking advancements, doesn’t anticipate turning a profit until 2029. This disparity highlights the speculative nature of the current AI boom.

Software vs. Hardware: A Long-Term Perspective

Son’s preference for software over hardware isn’t simply a tactical decision; it’s a reflection of his long-term vision. Hardware is subject to rapid obsolescence and intense competition. Software, on the other hand, can create lasting competitive advantages through network effects and continuous innovation. OpenAI, with its proprietary AI models and growing user base, has the potential to become a dominant force in the AI landscape, much like Microsoft or Apple in their respective domains.

What This Means for Investors and the Future of AI

SoftBank’s move serves as a stark reminder that the AI landscape is constantly shifting. Investors should be wary of simply chasing the latest hype and instead focus on companies with sustainable business models and strong competitive advantages. The future of AI will likely be shaped by those who can not only develop cutting-edge technology but also build robust ecosystems and foster widespread adoption. The emphasis on infrastructure, as seen with Project Stargate, will be critical for scaling AI applications and realizing their full potential. The question isn’t *if* AI will transform industries, but *who* will control the platforms that drive that transformation.

What are your predictions for the future of AI investment? Share your thoughts in the comments below!

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Technology

OpenAI, Microsoft 27% of the capital: thus it becomes a for-profit company. The «General AI» clause

by James Carter Senior News Editor
written by James Carter Senior News Editor

OpenAI Restructures as For-Profit Entity, Microsoft Holds $135 Billion Stake in AI Revolution

October 29, 2025 – In a seismic shift for the artificial intelligence landscape, OpenAI, the creator of ChatGPT, has officially transitioned to a for-profit structure. This move, following months of complex negotiations, positions the company for accelerated growth and investment, while simultaneously addressing concerns about the responsible development of increasingly powerful AI technologies. The news is already sending ripples through the tech world, and is a major story for Google News.

Microsoft’s Pivotal Role and Revenue Sharing

Microsoft emerges as the largest shareholder in the newly structured OpenAI, holding a substantial 27% stake valued at approximately $135 billion. This investment isn’t just financial; Microsoft has been a critical partner, providing the immense computing power that fuels ChatGPT and other OpenAI projects. However, the agreement includes a fascinating clause: Microsoft’s revenue-sharing agreement – currently set at 20% of OpenAI’s revenues – is contingent on OpenAI not achieving Artificial General Intelligence (AGI).

AGI, often described as AI that surpasses human capabilities across a broad range of tasks, represents a pivotal moment in technological history. If OpenAI reaches this milestone, independently verified by a panel of experts, Microsoft’s revenue share will be reduced, reflecting a shift in the power dynamic and acknowledging OpenAI’s independent success. This clause highlights the inherent uncertainty and potential disruption that AGI represents, even for industry giants like Microsoft.

Funding the Future: Nvidia, Softbank, and Billion-Dollar Commitments

The restructuring unlocks significant new funding opportunities for OpenAI. Previously hindered by its non-profit status, the company can now fully access previously committed investments. This includes a $30 billion pledge from Softbank and a massive $100 billion commitment from Nvidia. These funds will be channeled into ambitious development programs, with OpenAI already committing to $100 billion in purchases of cloud services and chips from Oracle, AMD, Microsoft, and, crucially, Nvidia itself. This demonstrates a clear strategy of securing the infrastructure needed to power the next generation of AI.

The Financial Reality: Revenue vs. Expenses

Despite the influx of capital and the transformative potential of its technology, OpenAI isn’t yet profitable. Recent reports indicate revenues of $4.3 billion in the first half of 2025, but also a loss of $13.5 billion. The company anticipates continued losses for several years as it invests heavily in research, development, and infrastructure. This aggressive growth strategy, while financially demanding, underscores OpenAI’s commitment to pushing the boundaries of AI and achieving AGI. It’s a high-stakes gamble, but one that could redefine the future of technology.

What Does This Mean for the Future of AI?

This transition isn’t simply a corporate restructuring; it’s a signal of AI’s maturation. The move to a for-profit model acknowledges the immense commercial potential of AI while also establishing a framework for responsible development. The 26% stake held by the OpenAI foundation, dedicated to health projects and mitigating the potential harms of AI, is a crucial element of this balance.

The race to AGI is now officially on, and OpenAI, backed by Microsoft and fueled by massive investment, is a leading contender. The implications are far-reaching, impacting everything from healthcare and education to the job market and the very nature of work. Staying informed about these developments is crucial for anyone navigating the rapidly evolving world of artificial intelligence. For more in-depth analysis and breaking tech news, continue to check back with Archyde.

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News

AI Infrastructure: Billions Fueling the Boom

by Sophie Lin - Technology Editor
written by Sophie Lin - Technology Editor

The $4 Trillion AI Infrastructure Race: Beyond the Hype and Into the Hardware

Nvidia CEO Jensen Huang’s recent estimate – a staggering $3 trillion to $4 trillion earmarked for AI infrastructure by the end of the decade – isn’t just a number; it’s a seismic shift reshaping the tech landscape. This isn’t simply about building better AI; it’s about constructing an entirely new physical foundation to *support* better AI, a foundation straining power grids and pushing construction to its absolute limits. The scramble for compute power is on, and the winners and losers will define the next era of technological dominance.

The Cloud Giants Duel for AI Supremacy

The initial land grab was largely defined by partnerships. Microsoft’s early $1 billion investment in OpenAI, evolving into a nearly $14 billion commitment, established a blueprint: exclusive cloud access in exchange for crucial funding. However, the landscape is rapidly diversifying. OpenAI’s move away from Azure exclusivity signaled a demand for options, a trend mirrored by Anthropic’s $8 billion Amazon Web Services (AWS) deal – complete with kernel-level hardware modifications for optimized AI training. Google Cloud is also actively courting AI startups, though with smaller, non-equity partnerships for now. This competition isn’t just about dollars; it’s about securing long-term access to the most promising AI models and the data they generate.

Oracle’s Unexpected Ascent

While Microsoft, Amazon, and Google were the early frontrunners, Oracle has emerged as a surprisingly powerful contender. The $30 billion deal with OpenAI, followed by a jaw-dropping $300 billion five-year commitment, has catapulted Oracle into the upper echelon of AI infrastructure providers. This massive investment, exceeding the company’s previous annual cloud revenue, demonstrates a bold bet on the future of AI and a willingness to aggressively pursue market share. It also highlights a key dynamic: the sheer scale of AI’s compute demands is creating opportunities for even established players to redefine themselves.

Nvidia: The Kingmaker and Potential Bottleneck

At the heart of this infrastructure boom lies Nvidia, the undisputed leader in GPUs – the specialized processors essential for AI workloads. The company’s dominance has fueled an unconventional investment strategy, including a $5 billion stake in Intel and, more notably, a $100 billion investment in OpenAI paid in GPUs. This “GPU-for-stock” arrangement, extended to xAI and AMD, is creating a circular economy where Nvidia’s scarcity drives up the value of both its hardware and the companies it supports. While currently sustainable, this model raises concerns about potential market manipulation and the long-term health of the ecosystem if Nvidia’s supply doesn’t keep pace with demand. Recent analysis from the Semiconductor Industry Association highlights the critical role of GPU supply chains in the future of AI development.

Hyperscale Data Centers: A Race Against Time and the Environment

Building the physical infrastructure to house this compute power is a monumental undertaking. Meta’s planned $600 billion investment in U.S. infrastructure through 2028 underscores the scale of the challenge. The company’s Hyperion data center in Louisiana, powered in part by a nuclear plant, exemplifies the energy demands of AI. However, this buildout isn’t without environmental consequences. Elon Musk’s xAI facility in Tennessee has already drawn scrutiny for exceeding emissions standards, highlighting the need for sustainable data center practices. The tension between AI’s potential benefits and its environmental footprint will be a defining issue in the years to come.

The Stargate Project: Ambition and Uncertainty

The ambitious “Stargate” project, a $500 billion joint venture between SoftBank, OpenAI, and Oracle, initially promised a rapid acceleration of AI infrastructure development. While facing early skepticism and logistical hurdles, construction of eight data centers in Abilene, Texas, is underway. The project’s success hinges on overcoming internal disagreements and securing consistent funding, but it represents a significant attempt to proactively address the infrastructure gap.

Looking Ahead: The Next Wave of AI Infrastructure Innovation

The current focus on GPUs and hyperscale data centers is just the beginning. We can expect to see increased investment in specialized AI hardware, including ASICs (Application-Specific Integrated Circuits) designed for specific AI tasks. Furthermore, advancements in cooling technologies – from liquid cooling to immersion cooling – will be crucial for managing the heat generated by these powerful processors. The development of more efficient AI algorithms will also play a vital role in reducing the overall infrastructure requirements. Ultimately, the future of AI infrastructure will be defined by a relentless pursuit of performance, efficiency, and sustainability.

What innovations in AI infrastructure do you believe will have the biggest impact in the next five years? Share your predictions in the comments below!

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