Infobay AI Attracts Bajaj Finance, LC Nueva, and AIF Investments, Valuation Soars to ₹1,200 Crore After Ashish Kacholia’s Initial Backing
Weeks after securing backing from renowned investor Ashish Kacholia, Infobay AI is again poised for significant capital infusion, attracting prominent investors such as Bajaj Finance, LC Nueva Advisors, and two Alternative Investment Funds (AIFs). This rapid succession of investments highlights the strong market interest in the Lucknow-based startup, which successfully transitioned from an edtech platform to a leader in artificial intelligence data solutions. The latest funding rounds are set to propel Infobay AI’s valuation close to ₹1,200 crore.
Company Transformation and Core Business
Originally established as EduGorilla Community Private Limited, an edtech venture, the company strategically rebranded and refocused its operations to become Infobay AI Limited. It now operates at the forefront of technological innovation, specializing in data solutions for artificial intelligence. Infobay AI’s core business involves building high-quality datasets and assisting companies in the development and validation of their AI models. The efficacy of any AI model is directly dependent on the quality and integrity of the data it learns from, making Infobay AI’s specialized services crucial for the advancement of AI technologies across various sectors.
Rapid Funding Trajectory
Investor enthusiasm for Infobay AI’s business model is evident in its accelerated fundraising. Within a span of just two weeks, the company successfully closed one significant funding round and initiated a second, substantially larger one. Both rounds have maintained a consistent share price of ₹4,02,155 per share, underscoring investor confidence in its valuation.
Chapter 1: The ₹44 Crore Series B Round (Closed 15 October 2026)
On 15 October 2026, Infobay AI’s board convened in Lucknow to approve the allotment of 1,044 Series B Compulsorily Convertible Cumulative Preference Shares (CCPS) and 50 equity shares to five investors. For valuation purposes, each CCPS is structured to convert into a single equity share. The shares were priced at ₹4,02,155 each, comprising a ₹10 face value and a premium of ₹4,02,145. This round successfully raised a total of ₹44 crore.
Key Investors in the First Round:
| Investor | Security | Shares | Amount |
|---|---|---|---|
| Silveranchor AI LLP | 50 Equity + 497 CCPS | 547 | ₹22.00 cr |
| Ashish Kacholia | Series B CCPS | 373 | ₹15.00 cr |
| Urjita Master | Series B CCPS | 124 | ₹4.99 cr |
| Ashish Kishore Ajmera | Series B CCPS | 50 | ₹2.01 cr |
| Total | 1,094 | ₹44.00 cr |
Notable participation in this round includes Ashish Kacholia, a well-regarded investor in the Indian small-cap market, who contributed ₹15 crore.
Valuation Post-First Round:
Following this capital infusion, Infobay AI’s total outstanding shares reached 24,449. At the issue price, this translated to a market capitalization of approximately ₹983 crore, positioning the company on the threshold of the ₹1,000 crore valuation.
Chapter 2: The ₹149 Crore Series B Round (EGM Scheduled for 20 November 2026)
Demonstrating aggressive growth ambitions, just 12 days after closing the initial round, on 27 October 2026, Infobay AI’s board approved a significantly larger preferential allotment. This proposed issue comprises up to 3,660 Series B CCPS and 50 equity shares, again priced at ₹4,02,155 per share. This round is expected to raise approximately ₹149.20 crore (₹1,49,19,95,050, to be exact). As a preferential allotment, shareholder approval is required, for which the company has scheduled its 1st Extraordinary General Meeting (EGM) of FY27 on 20 November 2026, to be conducted via video conference.
Key Investors in the Second Round:
This round involves 22 investors, with four key entities contributing over half of the total capital:
| Investor | Type | Shares | Amount |
|---|---|---|---|
| LC Nueva Advisors LLP | Body Corporate | 746 | ₹30.00 cr |
| SilverX Fund I | Category II AIF | 547 | ₹22.00 cr |
| Bajaj Finance Limited | Body Corporate | 373 | ₹15.00 cr |
| The Argan Fund I – Scheme I | Category II AIF | 248 | ₹9.97 cr |
| 18 other investors | Individuals & corporates | 1,796 | ₹72.23 cr |
| Total | 3,710 | ₹149.20 cr |
Significant Participants:
Highlights of this round include LC Nueva Advisors with the largest commitment of ₹30 crore, and Bajaj Finance Limited, one of India’s leading Non-Banking Financial Companies (NBFCs), investing ₹15 crore—a notable entry for an early-stage company’s cap table. Additionally, two Category II Alternative Investment Funds, SilverX Fund I and The Argan Fund I, collectively contribute approximately ₹32 crore. The remaining capital originates from a diverse group of individual and corporate investors, including Career Point Infra, Arihant Futures and Commodities, Pocketful Research Capital, and partners from Alpha Financials and PP Angels. (It is noted that a prior offer to The Argan Fund for 249 CCPS, approved on 14 September 2026, was subsequently withdrawn and replaced by the current offer of 248 CCPS.)
Impact on Cap Table and Valuation
The proposed second round will significantly alter Infobay AI’s shareholding structure and valuation. The company operates with two key share counts: outstanding shares (currently 24,449) and fully diluted shares (25,960 as per the EGM notice), which accounts for all potential conversions such as ESOPs. The fully diluted valuation and promoter holding will adjust as follows:
| Metric | Before EGM Issue | After EGM Issue |
|---|---|---|
| Fully diluted shares | 25,960 | 29,670 |
| Valuation (fully diluted) | ~₹1,044 cr | ~₹1,193 cr |
| Promoter holding | 57.22% | 50.06% |
| Institutional investors | 6.81% | 8.80% |
| Indian public | 35.97% | 41.13% |
Upon successful completion of this round, Infobay AI’s fully diluted valuation will reach nearly ₹1,200 crore. While existing shareholders will experience a dilution of approximately 12.3%, and promoters Rohit Manglik and Shashwat Vikram are not injecting new capital in this round, their combined holding will remain substantial at 50.06%. The company asserts that this will not result in a change of control.
Utilization of Funds
According to the EGM notice, the ₹149 crore raised is earmarked for strategic investments, including:
- Product development, technology enhancement, and talent acquisition.
- Execution of business growth plans.
- Strengthening the capital base and financial position.
- General corporate purposes.
The allotment process is required to be completed within 60 days of receiving the application money.
Conclusion and Outlook
In a remarkable transformation within a single month, Infobay AI has rapidly ascended from a relatively unknown entity to a prominent player backed by the likes of Ashish Kacholia, Bajaj Finance, and leading AIFs. Its valuation now stands robustly at nearly ₹1,200 crore. The consistent share price of ₹4,02,155 across both funding rounds underscores a strong consensus among sophisticated investors regarding the company’s current valuation.
The future trajectory of Infobay AI will largely hinge on its ability to execute ambitious revenue growth targets, projecting an increase from ₹158 crore to ₹1,600 crore. Should these targets be met, the current valuation may prove to be a significant undervaluation; otherwise, the valuation could face scrutiny. Stakeholders are advised to monitor developments closely, particularly the EGM scheduled for 20 November 2026.
Sources: Infobay AI board resolution dated 15 October 2026; Notice of 1st EGM for FY 2026–27 dated 29 October 2026 (including the Registered Valuer’s report dated 20 August 2026); company share count as of 23 October 2026.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Unlisted shares inherently carry higher risk and lower liquidity compared to listed shares. Readers are encouraged to conduct their own thorough research or consult a SEBI-registered advisor before making any investment decisions.
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