Servify raises $65 million funding; to launch IPO in 18-24 months – Moneycontrol

My Account
Follow us on:
Powered By
Discover 5000+ schemes. Track your portfolio 24X7
Invest Now
MC30 is a curated basket of 30 investment-worthy
mutual Fund (MF) schemes.
Invest Now
Powered By
The new age digital currency to diversify a portfolio.
Invest Now
Visit this section to access live price and charts.
Invest Now
Learn and stay informed about cryptocurrency in India.
Learn More
Powered By
Learn, discover & invest in smallcases across different types to build your long term portfolio.
Invest Now
Explore from India`s leading investment managers and advisors curating their strategies as smallcases.
Invest Now
Powered By
Diversify your portfolio by investing in Global brands.
Invest Now
Pre-configured baskets of stocks & ETFs that you can invest
in with a single click. Developed by hedge funds, global
asset management companies, experienced wealth
management firms and portfolio managers.
Invest Now

AMBAREESH BALIGA
Fundamental, Stock Ideas, Multibaggers & Insights
Subscribe
CK NARAYAN
Stock & Index F&O Trading Calls & Market Analysis
Subscribe
SUDARSHAN SUKHANI
Technical Call, Trading Calls & Insights
Subscribe
T GNANASEKAR
Commodity Trading Calls & Market Analysis
Subscribe
MECKLAI FINANCIALS
Currency Derivatives Trading Calls & Insights
Subscribe
SHUBHAM AGARWAL
Options Trading Advice and Market Analysis
Subscribe
MARKET SMITH INDIA
Model portfolios, Investment Ideas, Guru Screens and Much More
Subscribe
TraderSmith
Proprietary system driven Rule Based Trading calls
Subscribe


Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas
Subscribe
Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas
Explore
STOCK REPORTS BY THOMSON REUTERS
Details stock report and investment recommendation
Subscribe
POWER YOUR TRADE
Technical and Commodity Calls
Subscribe
INVESTMENT WATCH
Set price, volume and news alerts
Subscribe
Servify, which powers the after-sales experience for a range of device manufacturers, on August 24 said it raised $65 million in Series D financing led by Singularity Growth Opportunity Fund, bucking the funding slowdown in late-stage startups due to tough market conditions.
Strategic investors such as US insurance holdings firm AmTrust, family offices, including that of Fevicol-maker Pidilite, along with existing investors such as Iron Pillar, Beenext, Blume Ventures, and DMI Sparkle Fund also participated in the round.
The company plans to use the funds to expand its products, scale its technology platform and grow its business in international markets apart from scouting for acquisition opportunities.
While Servify didn’t disclose its valuation in this round, founder Sreevathsa Prabhakar told Moneycontrol that were closing in on a $1 billion valuation.
Ready to go public
“We are not somebody who’s valuation hungry since we want to build a really strong business. One thing I can tell you is we will go public in about 18 to 24 months, we are doing everything required to go public. Let the markets decide the valuation rather than any private investor” Prabhakar said.
Started in 2015 by Prabhakar, Servify works with several global original equipment manufacturers (OEMs) such as Apple, Samsung, OnePlus and Xiaomi to run their after-sales product care programmes, including providing extended warranty coverage. It also powers the smart exchange and upgrade programmes for such brands.
The startup claims to have partnerships with over 75 brands that include retailers, distributors, insurers, financial institutions, product liquidators, service providers, and carriers, besides consumer electronics manufacturers.
Nokia, Etisalat, Croma, Walmart, Reliance Retail, Amazon, and Flipkart are some the brands it works with.
Driving affordability
Servify recently extended its platform to enable affordable purchases by aggregating features such as no-cost EMI, card-linked offers, Buy Now Pay Later (BNPL) and instant discounts among others.
Prabhakar told Moneycontrol that they were running a pilot on this aggregation model in over 200 Apple-authorised reseller stores in cities such as Delhi, Mumbai and Nagpur.
“We will run this pilot for another three to four months. Once we learn all the market nuances, then we will probably scale across all the outlets where we are present” he said.
Servify claims to have a distribution presence in more than 50,000 outlets.
Prabhakar, however, said the firm was not taking any risks on its books. “The idea is to provide a single platform where the entire digital customer KYC to lending decisions to underwriting will happen digitally,” he said.
The move would also enable the company to bring in new lenders who do not have a retail distribution presence to simply plug onto their platform and participate in the lending play, he said.
The aggregation model would help Servify expand its capabilities to an entire product lifecycle—from helping customers buy a product to help them use it for a longer time and then enable an upgrade or exchange the product, Prabhakar said.
“We are building a massive global business from India that is already at an annual revenue run rate of over $130 million and is on the verge of turning profitable,” Prabhakar said.
International expansion
Global expansion is a big focus area for Servify. Prabhakar said international markets contributed 40 percent to the business and they expected to double it to 80 percent over the next two years.
“International markets will grow faster than India because those are mature markets, your ticket sizes are big and the profit margins are better,” he said.
Servify said it has increasingly gained adoption in North America, the European Union, the UK, Turkey, Saudi Arabia and the United Arab Emirates as well as other Gulf Cooperation Council countries.
It has a presence in about 40 countries and employs more than 700 people globally.
The startup was evaluating a few acquisition opportunities, which could it entry into new markets, access to new product capabilities or new customer contracts, Prabhakar said without sharing specific details.
“Product protection is no longer an afterthought; in fact, it is rapidly taking centre stage for both OEMs and consumers. We, therefore, see Servify steadily moving towards global leadership in this massive addressable market of over $100 billion,” said Apurva Patel, Managing Partner, Singularity Growth.
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited.
Copyright © e-Eighteen.com Ltd All rights resderved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited.

source