ESDS Software Solution IPO

A Leading Cloud and Cybersecurity Innovator in India

ESDS Software Solution Limited is a prominent Indian provider of end-to-end cloud, managed services, Data Centre infrastructure, and software solutions. Among the first to adopt cloud technology in India, it launched its first Data Centre in Nashik in 2010 and introduced eNlight Cloud in 2011. Offering integrated IaaS, SaaS, and SECaaS, ESDS serves diverse sectors—BFSI, government, and enterprise—ensuring digital continuity, compliance, and cost efficiency.

Strong Long-Term Relationships with Trusted Clients

ESDS Software Solution Limited has cultivated enduring partnerships with over 100 banks and leading organisations such as STPI and Larsen & Toubro. Its diversified offerings enable service across multiple industries, driving strong customer retention. The share of customers with relationships exceeding three and five years rose from 30.80% to 49.28% and 9.79% to 23.25%, respectively, between Fiscal 2022 and Fiscal 2024.

Strong Government Partnerships and Policy Advocacy

ESDS Software Solution Limited actively supports India’s data localisation and digital security initiatives through strong collaborations with government bodies. As an empanelled MeitY STQC cloud provider and STPI partner, it delivers compliant, scalable solutions. Its involvement in policy advocacy via the Cloud Computing Innovation Council further reinforces its role in shaping data governance, promoting transparency, and enabling secure public sector digital transformation.

Trusted Government Empanelment and Pioneering AI-Driven Cloud Technology

ESDS Software Solution Limited, empanelled by MeitY STQC, is authorised to offer public, private, and government community cloud solutions that meet rigorous national security standards. Through policy advocacy and patented AI-powered eNlight cloud with vertical auto-scaling, ESDS delivers optimised, scalable, and efficient cloud services. Its asset-light model enables rapid deployment, empowering India’s secure and innovative digital transformation.

Transparent and Flexible Customized Billing Models

ESDS Software Solution Limited offers a versatile billing system allowing customers to pay based on transactions, branches, users, custom consumption metrics, or business KPIs. Their patented eNlight vertical autoscaling enables a unique pay-per-consumption model, charging only for resources used. This flexible approach democratizes cloud access, supports cost optimisation, enhances operational efficiency, and drives strong customer retention and scalable growth.

Strength and Experience of Leadership and Management

ESDS Software Solution Limited credits its growth to the expertise of its Directors, Key Managerial Personnel, and Senior Management. Led by Chairman and Managing Director Piyush Prakashchandra Somani, with over 19 years in IT, the company benefits from strong vision and leadership. Its diverse team of 1,027 skilled professionals drives innovation and delivers secure, scalable cloud and IT solutions.

More About ESDS Software Solution Limited

ESDS Software Solution Limited is a prominent end-to-end provider of AI-enabled cloud infrastructure, managed services, Data Centre solutions, and software services in India. It stands as one of only two companies in the country delivering a full spectrum of these offerings, with the largest revenue from operations in Fiscal 2024 (Nexdigm Report).

Comprehensive Cloud and Infrastructure Solutions

ESDS offers a robust platform combining:

• Infrastructure as a Service (IaaS): Including colocation, Data Centre services, cloud computing, and cloud services.

• Managed Services: 24/7 IT support, backup, recovery, migration, security operations, and database administration.

• Software as a Service (SaaS): Software products delivered on subscription basis, along with a digital marketplace called “SPOCHUB” hosting both in-house and third-party applications.

These services focus on cost reduction while ensuring security, flexibility, scalability, and reliability for customers.

Pioneering Community Cloud Services

Among the first in India, ESDS pioneered community cloud services—multi-tenant cloud infrastructure designed for organisations with similar compliance, security, and regulatory needs. This includes verticals such as BFSI (Banking, Financial Services, and Insurance), Government, and Enterprises.

Infrastructure Footprint

ESDS operates four Tier 3 certified Data Centres located in Nashik, Navi Mumbai, Bengaluru, and Mohali, covering over 60,000 sq. feet. These are interconnected via a high-speed fibre-optic backbone ensuring secure, reliable data exchange with 99.95% guaranteed uptime and disaster recovery support.

Market and Customer Base

• The Indian cloud market is growing rapidly, driven by initiatives like Digital India, with an expected CAGR of 15.8% through 2030 (Nexdigm Report).

• ESDS caters to diverse sectors: BFSI, Government, and Enterprises across healthcare, education, energy, manufacturing, and more.

• As of September 2024, ESDS served approximately 1,398 customers.

Innovation and Patents

The company’s patented vertical autoscaling cloud technology, “eNlight Cloud,” optimises server usage and power consumption while maintaining high security and performance.

Industry Outlook

Market Growth and Projections

• Cloud Computing: The Indian cloud computing market is projected to grow from USD 21.37 billion in 2025 to USD 52.22 billion by 2030, reflecting a CAGR of 19.57%.

• Data Centres: India’s data centre capacity is expected to expand from 3.31 thousand MW in 2025 to 6.69 thousand MW by 2030, at a CAGR of 15.11%.

Growth Drivers

• Digital India Initiatives: Government programs like Digital India, Smart Cities, and Atmanirbhar Bharat are accelerating cloud adoption and data centre development.

• AI and 5G Integration: The rise of AI and the rollout of 5G are increasing demand for scalable and secure cloud infrastructure.

• E-commerce and Digital Services: The rapid growth of e-commerce and digital services is driving the need for robust data storage and processing capabilities .

Sector Dynamics

• Investment Surge: Major players like Amazon and Microsoft are investing heavily in India’s cloud infrastructure. Amazon plans to invest $12.7 billion by 2030, while Microsoft is committing $3 billion to expand its Azure and AI capabilities.

• Regional Hubs: Cities like Chennai, Navi Mumbai, and Hyderabad are emerging as key data centre hubs due to favorable policies and infrastructure development.

• Sustainability Focus: There is a growing emphasis on green data centres, with operators investing in renewable energy and energy-efficient technologies.

Strategic Implications

• Infrastructure Demand: The surge in cloud adoption and AI integration is driving the need for advanced data centre infrastructure.

• Policy Support: Government incentives and initiatives are creating a conducive environment for industry growth.

• Technological Advancements: Emphasis on AI, 5G, and sustainability is shaping the future of the cloud and data centre sector.

How Will ESDS Software Solution Limited Benefit

• ESDS Software Solution Limited is well-positioned to benefit from the rapid growth of India’s cloud computing market, projected to reach USD 52.22 billion by 2030, by leveraging its comprehensive AI-enabled cloud infrastructure and managed services.

• Its four Tier 3 certified Data Centres across key cities align with the expanding data centre capacity in India, ensuring reliable, secure, and scalable solutions amid rising demand.

• Government initiatives like Digital India and increasing AI and 5G adoption create strong market drivers that ESDS can capitalize on through its pioneering community cloud services tailored for BFSI, Government, and enterprise sectors.

• ESDS’s patented “eNlight Cloud” vertical autoscaling technology enhances efficiency and sustainability, aligning with the sector’s emphasis on energy-efficient infrastructure.

• The company’s robust SaaS offerings and digital marketplace “SPOCHUB” support diverse customer needs, contributing to its large and growing client base of nearly 1,400 customers.

• Substantial investments by global tech giants validate the market potential, presenting partnership and growth opportunities for ESDS in India’s evolving cloud ecosystem.

Peer Group Comparison

Name of Company	Revenue (₹ million)	Face Value (₹)	EPS (₹)	NAV (₹)	P/E  (₹)	P/E  (₹)	RoNW (%)
ESDS Software Solution Limited	2,865.18	1.00	1.35	22.21	[●]	[●]	6.60
Peer Groups
E2E Networks Limited (2)	944.64	10.00	15.11	44.77	152.16	156.40	33.74

Key Strategies for ESDS Software Solution Limited

Infrastructure Expansion and Optimization

ESDS Software Solution Limited invests heavily in scaling data centre resources and upgrading technology to enhance performance, security, and cost-efficiency. Focused on cloud and GPU nodes, the company replaces end-of-life systems and adopts next-generation infrastructure for improved resource utilization and operational growth.

AI/ML-Driven Automation and Service Enhancement

ESDS leverages AI/ML to simplify customer onboarding and automate provisioning, while enhancing industry-specific cloud solutions. The company’s AI-driven automation improves operational efficiency, supports self-service, and evolves customer experiences, enabling intelligent, scalable cloud services tailored to diverse enterprise needs.

Government and Business Collaboration

ESDS expands its public sector presence through partnerships with government agencies and third-party vendors. Collaborations include core banking hosting, smart city projects, and digital service platforms, broadening service reach while integrating advanced technologies like AI, RPA, and IoT to deliver comprehensive digital transformation solutions.

Brand Leadership Strengthening

ESDS promotes its expertise via thought leadership events, advocacy participation, and targeted marketing campaigns. The company focuses on AI and cloud innovation, driving awareness and engagement to maintain its leadership position and reinforce trust among enterprises and government stakeholders.

Renewable Energy Transition for Sustainability

Committed to environmental responsibility, ESDS plans a full transition to renewable energy within four years. Already deploying solar installations, the company aims to meet rising data centre demands sustainably, benefiting from green energy policies while reducing carbon emissions and operational costs.