ideaForge has proposed to use the IPO proceeds to pay off debt and manage working-capital requirements. Analysts feel the future revenue hinges on the execution of the order book. According to them, ideaForge heavily relies on government-aided projects, which poses a significant risk. Slow processing, payment delays from such entities could impact its financials.
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IdeaForge, which predominantly builds products for security agencies and defence forces, claims it has deployed over 1,000 drones since its inception. Apart from Infosys, the company counts WRVI Capital and Qualcomm as its investors.
“The timing of the funding is opportune as we expect strong growth in our product pipeline. The funds, along with the recent fundraise from Infosys and other investors, will support ideaForge in the execution of our growing order book,” said Ankit Mehta, co-founder and CEO at IdeaForge.
A source told ET that the investments in IdeaForge came after waning investor interest in the company. While the company has diversified to focus on industrial and agricultural applications of drones, the market for such vehicles in India is still very small.