Riot Labz Gears Up for 2027 IPO, CEO Shishir Gupta Reveals FY26 Pre-IPO Fundraising Plan

New Delhi: Homegrown original design manufacturer Riot Labz is planning to go public on Indian stock exchanges by FY2026-27, with preparations set to begin by March next year, according to CEO Shishir Gupta. The company also plans to raise funds through pre-IPO equity in FY26.

“We aim to raise capital through pre-IPO equity funding in FY26, followed by our listing in FY27. The details regarding the bankers and the process will be finalized in FY26 as we prepare for the stake sale, which will depend on market conditions and the company’s performance,” Gupta said. The exact amount of equity to be sold will be determined later. Currently, 70% of the company’s equity is held by promoters, including co-founders Gupta, Nithin David, and Varun Gupta. The remaining equity is with startup investment firm India Quotient, known for funding companies like Sugar and Giva, and some individual investors.

Expanding Business and Revenue Projections

Riot Labz, based in Noida, manufactures IoT electronics under the Oakter brand. The company plans to expand its electronics manufacturing services (EMS) division, particularly in making laptops and tablets, for which it has received approval under the Centre’s production-linked incentive (PLI) scheme for IT hardware. Gupta mentioned that Riot Labz is in talks with more brands to secure orders.

The EMS division is expected to generate ₹130 crore in revenue for FY25, with a growth projection of 30% for the following year. Despite this, the bulk of the company’s projected ₹800 crore revenue for FY25 comes from producing Paytm soundboxes, used in retail shops for UPI payments. To scale up EMS operations, the company plans to use third-party manufacturing.

Developing 4G Chipset

As an original design manufacturer (ODM), Riot Labz is also working on a 4G chipset to provide high-scale connectivity solutions for Chinese fiber optics company Fibicon. Gupta added that the company has applied for assistance under the government’s design-linked incentive (DLI) scheme for this project.

PLI Scheme and Market Participation

The Centre’s PLI scheme has seen quicker progress in sectors like mobile phones and telecom equipment, while the IT hardware segment required revisions for better flexibility. The revised IT hardware PLI 2.0 scheme now allows brands to subcontract manufacturing to EMS players, who can then avail of incentives on production. Riot Labz was one of 27 companies, including major laptop manufacturers like Acer, Asus, Dell, HP, and Lenovo, approved under the scheme last November.