GENXAI😂 ANALYTICS (Veear Analytics) SME IPO BUSINESS REVIEW. AVOIDED.👎
Jaipur based SMALL IT company is an Implementation partner for ANAPLAN, SAP?? etc dreaming to make Ai tools by spending Rs.28Cr public money by employing scores of new staff and buying laptops /hardware /software.
Sounds similar to failed exercises like PARAMATRIX, CAPITALNUMBERS, TRUST-FIN etc where public money is taken for NEW BIG TEAMS for New Software Product Development or for New Office
Only a VK or MA entry (for whatever be their reasoning), can prop up the stock, since the development of the proposed tools will take 1.5 to 2 years with massive new team
🩷LIKE, READ FULL REVIEW & DECIDE
This business review is based on DRHP/RHP filed by the company at Exchange & is based on reviewer’s understanding of the documentation. For a full understanding of risks, financials, objectives & prospects suggest to go through the RHP in detail & form own opinion
OBJECTS: Out of Rs. 54.84Cr Raised, MASSIVE Rs.28.4Cr for establishing new Ai Analytics business , Rs.7.2Cr for WC, Rs.3Cr for loan Repayment and rest for general and listing expenses
ACER Credit Ratings Private Limited as the Monitoring Agency to monitor the utilization of funds
OUT OF 28.4Crore, FIRST WASTAGE of Rs.23.34Cr will be on Agentic AI, 😂 is an advanced AI cloud engine designed to empower businesses across diverse sectors with so called intelligent automation and decision-making capabilities
The SECOND WASTAGE of Rs.5.02Cr is for SICM 😂(Sales Incentive Compensation Management) Portal, is supposed to be a cutting-edge platform 😆 for incentive management lifecycle for NBFCs, insurance, manufacturing, and distribution industries . (As if Potential clients never heard of Zaggle, Novus and many, many other service providers)
Incidentally, in the RHP, on page 105, it is stated: “The capital expenditure in relation to development of new products shall be undertaken in-house by the Company.” 😂🤣😂 Then why burn 28Cr of IPO funds???? (Better they learn to use existing Ai tools first to avoid such howlers!!)
MASSIVE WASTE UNLOADING OVER NEXT 2 YEARS!
Cost of product development for Agentic AI is Rs.23.34Cr which will be utilized in the following manner:
Research and development of core modules through hiring skilled personnel in AI, ML, Cloud Engineering,and Product Management - ₹ 18Cr (New manpower costs)
Laptops, GPUs, Servers and Software costing Rs. 5.07 Crore split as
Infrastructure and cloud hosting setup for scalable deployment- Rs.3.5Cr
Development of domain-specific connectors and APIs- Rs.1.6Cr.
Just check back after an year or two! You will know where all these waste landed up!
BUSINESS & PROSPECTS:
Company started as Harbinger Consultancy in 2019. It became Veear Analytics in 2022 and transformed further into GenXAI Analytics in 2024 when IPO process started.
This is a regular Small IT company with objects as the generic “design, development, testing, training, data processing and implementation of software” The object was changed in 2024 to add portfolio investment management🤣 BUT they forgot to ADD any analytics and Ai related stuff. 😂😂
For boosting IPO prospects, several name plate companies where incorporated or acquired from promoters in 2024. (GenXAI Inc, GenXAI Pte, GenXAI Softgrid Pvt Ltd, GenXAI Bot Private Limited) These are dummies with as good as no business, at the time of acquisition
The company is a non exclusive licensee of ANAPLAN, business planning software. 👍
The company currently does IT Staffing (38% revenue), Provides IT Support (31% Revenue), IT Infra Service (17% Revenue), Software Development (10% revenue), Other Miscellaneous (6%)
96% of revenue is tied to Implementation of projects of ANAPLAN, SAP (?) etc. There is only 4% revenue from own software proprietary tools.
All the big GENxAi talk and company structure with several firms, is the plan for generating revenue in FUTURE. Not Present. This IPO looks like a good RECIPE for DISASTER at least for 2 years (new products development period) and after that, chances are that things may deteriorate since there wont be balance IPO money, to continue to support the freshly hired employee's costs👎
VALUATION AND DECISION:
Rs. 116 is at 14x its TTM earnings, on post IPO equity basis.
This company is actually SELLING a DREAM future with proprietary AI tools all of which have to be developed with money taken from willing sacrificial investor bakras!👎 AVOIDED FULLY!
Suggest to assess by yourself and take your own decision, after further study, considering various factors discussed and any other info available. YOU MAY HAVE A DIFFERENT OPINION THAT THIS IS A BIG existing Ai ANALYTICS COMPANY. It is fine to have conflicting views.
🩷LIKE BOOKMARK GENXAI ANALYTICS (Veear Analytics) SME IPO REVIEW