business · 2026-03-28
Meritto Gets SEBI Nod for Its IPO
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SEBI approved Meritto's parent NoPaperForms to proceed with its IPO after a confidential DRHP filingThe edtech SaaS firm targets a ₹2,000 Cr valuation, raising ₹500-600 Cr through fresh shares and an offer for saleInvestor Info Edge plans to pare its stake below 25% post-listing via the OFS component
How does Meritto's confidential filing work?
SEBI lets companies file DRHPs confidentially, keeping financials private until closer to launch. Meritto used this route [filed confidentially in November 2025], giving it time to prep without public scrutiny. After SEBI's observation letter, the company can now publicly proceed with its IPO.
Why did Meritto choose the confidential route?
The confidential route lets companies avoid premature market speculation. Meritto likely wanted to [refine its financials and pricing strategy] before going public. This path, introduced by SEBI in recent years, is popular with startups that prefer controlled disclosure timelines.
What role do bankers play in this IPO?
Meritto appointed [IIFL Capital Services and SBI Capital Markets] as lead bankers. These firms structure the offering, set pricing bands, conduct roadshows, and manage institutional investor outreach. Their involvement signals the company is serious about execution.
How long does SEBI review typically take?
SEBI typically reviews DRHPs within 30 to 75 days. Meritto filed in [November 2025] and received its observation letter in March 2026, roughly 4 months later. The confidential route can sometimes extend timelines since back-and-forth happens privately.
What does this IPO signal for SaaS startups?
A SaaS company targeting a ₹2,000 Cr listing signals growing investor appetite for B2B software in India. If Meritto lists successfully, it could open doors for peers [like Leadsquared or other vertical SaaS firms] to pursue public markets rather than staying private indefinitely.
Could this reshape edtech funding strategies?
If Meritto's IPO succeeds, edtech SaaS firms may prefer public markets over late-stage private rounds. Companies like [Leadsquared or Collegedunia's parent] could follow, reducing dependence on venture capital for growth funding.
What happens to Info Edge's stake post-IPO?
Info Edge plans to sell part of its stake via OFS, likely dropping [below 25% ownership]. This partial exit lets Info Edge book returns while retaining meaningful exposure. It mirrors how Info Edge partially exited [Zomato] through staged sell-downs post-listing.
How might retail investors view this listing?
Retail investors may find Meritto appealing given its B2B SaaS model with recurring revenue. However, at [₹2,000 Cr valuation], they will scrutinize profitability and client retention metrics closely. Comparable listings like [Zaggle or RateGain] offer benchmarks for SaaS IPO performance.
How big is Meritto in enterprise edtech?
Meritto serves the education sector with enrollment and student lifecycle tools. It competes in enterprise edtech SaaS, a niche but growing space. With a target raise of [₹500-600 Cr], it would rank among notable mid-cap SaaS IPOs in India, reflecting steady revenue from institutional clients.
What valuation multiples is Meritto targeting?
At a [₹2,000 Cr valuation] raising ₹500-600 Cr, Meritto's implied revenue multiples likely range between 15-25x, typical for growth-stage SaaS. Investors will compare this to [Freshworks or Zoho's] private benchmarks to assess if pricing is fair.
How does Meritto compare to listed SaaS peers?
Listed Indian SaaS peers include [RateGain and Zaggle], which trade at varied multiples based on margin profiles. Meritto's niche in education gives it less direct competition but also a narrower addressable market compared to horizontal SaaS players.
Why is enterprise edtech growing in India?
India has over [50,000 higher education institutions], many digitizing admissions and student management. Growing competition among colleges for enrollments drives demand for platforms like Meritto. Government push for digital infrastructure in education further accelerates adoption.
Source: inc42.com