<ul><li>The issue received good interest from QIBs, non-institutional and retail investors.</li><li>It has already raised ₹96.37 crore from anchor investors.</li><li>The net proceeds will be utilised to fund working capital and general corporate purposes.</li></ul>Sewerage solution provider <keyword id="48098" type="General" weightage="100" keywordseo="ems" source="Orion">EMS</keyword>’ ₹321 crore initial public offer (IPO) was subscribed 76 times the shares on offer with aggressive bidding by qualified institutional buyers or QIBs. It also received good interest from non-institutional and retail investors. The price band has been fixed at ₹200-211 per equity share. It raised ₹96.37 crore from anchor investors like NAV Capital Emerging Star Fund, Abakkus Diversified Alpha Fund, Saint Capital Fund, Meru Investment Fund, BofA Securities Europe and Morgan Stanley Asia (Singapore). <table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No of times subscribed </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">QIBs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">150 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Non institutional investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">84.39 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">31 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">76.21 </td></tr></tbody><tbody></tbody></table> Source: Press release <keyword id="18521213" type="General" weightage="20" keywordseo="ems-ipo" source="Orion">EMS IPO</keyword> comprises a fresh issue worth ₹146 crore and offer for sale (OFS) portion consists of 82,94,118 shares of ₹10, which aggregates to ₹175 crore. Ramveer Singh is the promoter who is also a selling shareholder. The net proceeds from the fresh issue will be utilised to fund working capital requirements of the company, and general corporate purposes. About the company The company is a sewerage solution provider with water supply system, water and waste treatment plants, electrical transmission and distribution and more. It has identified <keyword id="92310" type="General" weightage="50" keywordseo="va-tech-wabag" source="Orion">Va Tech Wabag</keyword> as its listed peer. It also executes road and allied projects, operates and maintains wastewater scheme projects (WWSPs) and water supply scheme projects (WSSPs) for government authorities. WWSPs include sewage treatment plants (STPs) along with sewage network schemes and common effluent treatment plants (CETPs). WSSPs include water treatment plants (WTPs) along with pumping stations and laying of pipelines for supply of water. Its revenues went up by 49% in FY23 from FY22 and its net profit went up by 17.8% in the same period. The company is in a capital intensive business and depends on competitive bidding to gain business. Any change in budgetary allocation to the sector can also adversely affect its business, it said in its RHP. The allotment of shares is expected to be finalised on September 15, and is likely to be listed on BSE, NSE on September 21.

EMS IPO subscribed 72x with aggressive bids by QIBs

​EMS IPO opens on September 8 – From GMP to risk factors, everything you want to know

New Delhi, Water and sewerage infrastructure company <keyword id="18627479" type="General" weightage="80" keywordseo="ems-limited" source="Orion">EMS Limited</keyword> on Monday announced the price band of Rs 200-211 per equity share for its upcoming IPO. Set to open on Friday, the IPO for aggregating Rs 14,624.00 lakh through fresh issue of Equity Shares &amp; 82,94,118 equity shares under Offer for Sale by the Promotor, <keyword id="287401" type="General" weightage="80" keywordseo="ramveer-singh" source="Orion">Ramveer Singh</keyword>. The company's issue will open for the anchor portion on Thursday, 7th September 2023, and will close for the public on Tuesday, 12th September 2023. At the upper price band, the company's IPO size would be Rs 320-321 crore. Proceeds from the fresh issue will fund working capital requirements and other general corporate purposes. Khambatta Securities Limited is the sole Book Running Lead Manager to the Issue, while KFin Technologies Limited is the Registrar to the Issue. The company already completed the pre-IPO placement of 16,00,000 equity shares at an issue price of Rs 211, aggregating Rs 33.76 crore. Accordingly, the size of fresh issue was reduced to Rs 146.24 crore and an offer for the sale of 82.94 lakh shares by promoter Ramveer Singh. At present, Singh holds a 97.81 per cent stake in the company. Incorporated on December 21, 2010, <keyword id="48098" type="General" weightage="100" keywordseo="ems" source="Orion">EMS</keyword> provides various services, ranging from EPC and O&amp;M, in sewerage solutions, water supply systems, and wastewater schemes for government authorities and local bodies. Headquartered in Ghaziabad, the company offers water and sewerage infra solutions, including laying the sewerage network to building sewerage and water treatment plants in the states of Uttar Pradesh, Bihar, Uttarakhand and Rajasthan. With a net margin of around 20 per cent, the company expects to continue focusing on only high-margin integrated projects. The company also undertakes Operations and Maintenance mandates for the projects it has executed. EMS Ltd's 100 per cent projects are works related to tenders floated by government or semi-government agencies funded through the World Bank. The company has executed 67 projects over the past 13 years and has an order book of Rs 1,745 crore, comprising 18 ongoing projects across WWTPs, WSSPs, EPS, and HAM segments. Most of its projects have been executed across Bihar, Uttarakhand, Madhya Pradesh, Rajasthan and Haryana. The company's total revenues from operations stood at Rs. 538.16 crore for FY2022-23 against Rs. 359.85 crore for FY2021-22. The EBITDA for FY2022-23 stood at Rs 149.01 crore (against Rs 112.51 crore in FY2021-22), and PAT stood at Rs 108.62 crore (against Rs 79.04 crore in FY2021-22).

Water infrastructure company EMS sets IPO price band at Rs 200-211/share

<ul><li>The offer is a combination of fresh issue worth ₹320 crore and an offer for sale (OFS) of ₹545 crore.</li><li>The price band of the issue has been set at ₹415 - ₹436 per share.</li><li>The company intends to utilise the fresh issue towards debt repayment, funding working capital requirements and general corporate purposes.</li></ul>The electronic manufacturing services company <keyword id="14685095" type="General" weightage="20" keywordseo="Avalon-Technologies" source="Orion">Avalon Technologies</keyword> is all set to open its initial public offering (IPO) of shares on April 3 and close on April 6. The price band for the issue has been set at ₹415 - ₹436 per share. Shares of the company were already commanding a premium of ₹25 per share in the grey market. <a href="https://www.businessinsider.in/stock-market/news/grey-market-premium-what-is-it-and-where-is-it-coming-from/articleshow/95454371.cms">GMP is the premium at which IPO shares are traded</a> in an unofficial market before they are listed on the stock exchanges. The offer is a combination of fresh issue worth ₹320 crore and an offer for sale (OFS) of ₹545 crore. The company has reduced the size of its IPO from ₹1,025 crore it had planned to raise earlier. As per reports, the company cut its IPO size after it completed a pre-IPO placement – carried out between October 2022 and February 2023 – amounting to ₹160 crore. The company intends to utilise funds raised via the IPO towards debt repayment, funding working capital requirements and general corporate purposes. The company’s total net debt rose to ₹283 crore in FY22 from ₹261 crore in the previous financial year. Avalon is an end-to-end electronic manufacturing service solutions provider founded in 1999. Some of its key clients include Kyosan India, Zonar Systems Inc, Collins Aerospace, e-Infochips, The US Malabar Company, Meggitt (Securaplane Technologies Inc) and Systech Corporation. It has 12 manufacturing units located across the US and India. The company says it can also benefit from the tailwinds of Aatmanirbhar Bharat and the production-linked incentive Scheme (PLI). About 75% of the issue has been reserved for qualified institutional investors, 15% for non-institutional investors and the remaining 10% for retail investors. Shares of the company will be listed on BSE and NSE on April 18. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue from operations </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">EBITDA margin </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹840 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹68 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.60% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹690 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹23 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.58% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹641 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹12 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.05% </td></tr></tbody></table>Source: RHP The company said it goes through huge competitive pressures in its business, which would be detrimental to its future prospects. “We face significant competition in our business. The markets for our products are characterised by factors such as rapid technological change, the development of new end products and their rapid obsolescence, evolving industry standards and significant price erosion over the life of a product,” said the company in its red herring prospectus. Its key competitors include Indian EMS providers such as Dixon Technologies (India), Amber Enterprises India, Elin Electronics, Syrma SGS Technology, Kaynes Technology India, VVDN Technologies and Bharat FIH Limited. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/hiring-outlook-remains-strong-for-blue-collar-jobs-in-manufacturing-and-services-in-q1-2024/articleshow/99060293.cms">Amid layoff doom, hiring outlook remains strong for blue-collar jobs in manufacturing and services: TeamLease</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/personal-finance/news/reits-and-invits-become-attractive-after-major-taxation-overhang-removed/articleshow/99058405.cms">REITs and InvITs become attractive after major taxation overhang removed</a>

Electronic manufacturing services firm Avalon Technologies’ ₹865 crore IPO to open on April 3

<ul><li>The IPO received fairly decent demand from retail investors as 16% of the shares reserved for them were subscribed.</li><li>The price band of the IPO is set at ₹415-436 per share.</li><li>The shares of the company are currently commanding a grey market premium, or GMP, of ₹30 per share.</li></ul>Only 3% of the initial public offering of <keyword id="14685095" type="General" weightage="20" keywordseo="Avalon-Technologies" source="Orion">Avalon Technologies</keyword> was subscribed on the first day of the IPO, on Monday. However, it did receive fairly decent demand from retail investors as 16% of the shares reserved for them were subscribed. Qualified institutional buyers (QIBs) however made no bids at all, for the IPO. The IPO will close on April 6, 2023. The offer is a combination of fresh issue worth ₹320 crore and an offer for sale (OFS) of ₹545 crore. The company has reduced the size of its IPO from ₹1,025 crore it had planned to raise earlier. As per reports, the company cut its IPO size after it completed a pre-IPO placement – carried out between October 2022 and February 2023 – amounting to ₹160 crore. The price band of the IPO is set at ₹415-436 per share. The shares of the company are currently commanding a grey market premium, or GMP, of ₹30 per share. <a href="https://www.businessinsider.in/stock-market/news/grey-market-premium-what-is-it-and-where-is-it-coming-from/articleshow/95454371.cms">GMP is the premium at which IPO shares are traded</a> in an unofficial market before they are listed on the stock exchanges. The company intends to utilise funds raised via the IPO towards debt repayment, funding working capital requirements and general corporate purposes. The company’s total net debt rose to ₹283 crore in FY22 from ₹261 crore in the previous financial year. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category of investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscription status </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Qualified institutional buyers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.00 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Non institutional investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.01 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.16 times </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Overall </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.03 times </td></tr></tbody></table> Avalon is an end-to-end electronic manufacturing service solutions provider founded in 1999. Some of its key clients include Kyosan India, Zonar Systems Inc, Collins Aerospace, e-Infochips, The US Malabar Company, Meggitt (Securaplane Technologies Inc) and Systech Corporation. It has 12 manufacturing units located across the US and India. The company says it can also benefit from the tailwinds of Aatmanirbhar Bharat and the production-linked incentive Scheme (PLI). Analysts have recommended subscribing to the IPO on strong growth prospects in the Indian electronic manufacturing services (EMS) industry. “Considering the healthy business prospects for the Indian electronic manufacturing services (EMS) industry, company’s high return ratios and similar margins relative to peers and valuation comfort at 55.5x P/E on annualised FY23 financials, we recommend ‘subscribe’ to the issue,” said analysts at Reliance Securities. The company’s key competitors include Indian EMS providers such as Dixon Technologies (India), Amber Enterprises India, Elin Electronics, Syrma SGS Technology, Kaynes Technology India, VVDN Technologies and Bharat FIH Limited. “Its unique offering and B2B model help Avalon with long-term relationships with its diverse customers, ensuring incremental order book and steady margin. We recommend ‘subscribe’ for the long term,” said a report by Canara Bank Securities. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adani-group-stocks-tumble-amid-reports-of-sebi-probe-group-market-capitalisation-falls-by-22000-crore/articleshow/99214962.cms">Adani group stocks tumble amid reports of SEBI probe: Group market capitalisation falls by ₹22,000 crore</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/india-incs-credit-quality-continues-to-shine-in-fy23-slowdown-concerns-could-impact-it-textile-sectors-says-icra/articleshow/99211589.cms">India Inc’s credit quality continues to shine in FY23: Slowdown concerns could impact IT, textile sectors, says ICRA</a>

Avalon Technologies’ IPO subscribed 3% on the first day of issue

<ul><li>Cyient DLM looks to raise ₹740 crore through a fresh issue of equity shares.</li><li>The company is a wholly owned subsidiary of IT services company Cyient, which is listed on Indian stock exchanges.</li><li>The company is a qualified supplier to global original equipment manufacturers (OEMs) in the aerospace and defence, medical technology and industrial sectors.</li><li>China plus one strategy is aiding the company by providing opportunities to grow its business and market share, it says in its DRHP. </li></ul>Electronic manufacturing services and solutions provider Cyient DLM filed its draft red herring prospectus (DRHP) papers with market regulator SEBI to raise funds through an initial public offering (IPO). The company is a wholly owned subsidiary of IT services company Cyient, which is listed on Indian stock exchanges. Cyient has informed investors in a BSE statement that its subsidiary may also consider raising up to ₹148 crore prior to the filing of the red herring prospectus with the registrar of companies. If it raises funds through the pre-IPO placement, the fresh issue size will be reduced accordingly. Cyient DLM is looking to raise ₹740 crore through a fresh issue of equity shares. The proceeds from the IPO will be utilised towards funding incremental working capital, capital expenditure, repayment of loans, achieving inorganic growth through acquisitions and general corporate purposes. The company is a qualified supplier to global original equipment manufacturers (OEMs) in the aerospace and defence, medical technology and industrial sectors. It claims to be amongst few electronic manufacturing services (EMS) companies in India catering to highly regulated industries; and the largest supplier of EMS services to the aerospace and defence industry. Its offerings include printed circuit boards, cable harnesses, and box builds which are used in safety critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment. Some of its marquee customers are Honeywell International, Thales Global Services SAS, ABB Inc, Bharat Electronics and Molbio Diagnostics. It has manufacturing facilities in Mysuru, Hyderabad and Bengaluru. China plus 1 strategy The company in its DRHP said that India is well positioned to benefit from global original equipment manufacturer’s (OEM) strategy towards China plus 1 strategy for supply chain diversification. China leads the global electronic manufacturing services business, and had 46.7% share in 2021. It is a global leader due to operational cost benefits, availability of a large number of highly skilled personnel, infrastructure, logistical advantages, and proximity to the largest end user base across all end-user verticals, the company says. “However, many global electronics manufacturers are now contemplating on China + 1 strategy and looking for alternate manufacturing locations for exports, creating tremendous investment potential for countries like Vietnam, India, and the Philippines etc,” said the draft red herring prospectus. Its order book has increased to ₹1,202 crore as on March 2022 from ₹906 crore in the previous year. The company is heavily dependent on ten customers as 93.24% of its revenues came from them in FY22. Its dependence on these customers has gone up slowly but steadily to 90.8% in FY21 and 89.3% in FY20. The profitability of the company has more than tripled in FY22 from the previous financial year at ₹39.7 crore. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue from operations </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Profit for the period </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹720 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹39.7 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹628 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹11.8 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹457 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-₹6.7 crore </td></tr></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/this-shark-tank-india-s2-winner-bowls-judges-over-with-its-for-profit-approach-to-social-impact-haqdarshak/articleshow/96906954.cms">This Shark Tank India S2 winner bowls judges over with its for-profit approach to social impact</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/net-inflows-in-mf-schemes-up-three-times-at-7303-crore-in-december/articleshow/96881163.cms">Investors continue to SIP on equities: Net Inflows in MF schemes up three times at ₹7,303 crore in December</a>

Cyient subsidiary files draft papers with SEBI for IPO worth ₹740 crore

<div class="image-container float_right" style="width:400px"><div class="image"><img src="http://static5.businessinsider.com/image/4e1e8f7eccd1d53f3d720000-590-443/viddy_590.jpg?maxX=400" border="0" alt="Viddy" width="400" /></div>Apple</div>SAN FRANCISCO, March 11 (<keyword id="76338" type="CITY" weightage="60" keywordseo="Reuters">Reuters</keyword>) - Last spring, the future for Viddy, a video-sharing <keyword id="6354576" type="CITY" weightage="60" keywordseo="Facebook">Facebook</keyword> app, seemed as sunny as southern California's skies.
Based a block away from Venice Beach, the 30-person startup impressed prospective investors with skyrocketing user growth figures and won funding from them at a $370 million valuation. The tech press hailed it as the "Instagram for video," potentially ripe for a billion-dollar-plus buyout. Justin Bieber wanted to invest - and the pop star eventually did just that.
But this month, the company fired its chief executive, laid off nearly half of its staff and blamed plummeting user numbers on something it once believed to be its ticket to success: Facebook Inc.
"Everyone has known for years that Facebook can be a huge driver of traffic, but Facebook also frequently changes who gets traffic," said Brian O'Malley, a Viddy director and a partner at venture capital firm Battery Ventures, which is an investor in Viddy. "We certainly didn't anticipate the decline."
Viddy's dramatic reversal of fortune is a common tale among builders of software and services that rode the No. 1 social network to viral stardom, only to plummet when Facebook made one of its frequent changes in the way third-party <keyword id="6354741" type="UNKNOWN" weightage="60" keywordseo="Apps">apps</keyword> can communicate with and solicit customers.
Investors and entrepreneurs say that the unpredictable way that Facebook cuts off apps or suppresses their presence has made them increasingly wary of building companies that rely on Facebook. Some believe Facebook could eventually attract regulatory scrutiny because of its ability to make or break companies that rely on its billion-strong base of users.
Douglas Purdy, Facebook's director of developer products, said the company boosts traffic to apps that prove to be popular and takes it away from those that overwhelm people with notifications or are otherwise abusive or unpopular. In the past year and a half, Facebook has cut down spam complaints by 90 percent, he said.
"We don't want to be in the business of king-making," Purdy said. "In the end, users decide what they care about, and they have control over it. If you're a great developer and you're good at sharing really good content, you're going to get traffic."
He declined to comment on relationships with individual developers.
Developers sympathetic to Facebook say that the company has rightly prioritized its users, who could abandon the network if they feel overwhelmed by solicitations from apps.
"Facebook thinks first and foremost about the user," said Riccardo Zacconi, the chief executive of game maker King.com. "For companies that were relying 100 percent on virality, there's been a negative impact, but it's been a better user experience."
Viral growth occurs when current users recruit other users, by inviting them to join, touting the content or sharing an application.
It is not clear if Viddy and other firms who have partly blamed Facebook for declining fortunes would have run into difficulties eventually anyway as, for example, rivals came out with new products.
HOT STARTUPS
But as consumers spend increasing time on mobile devices, disaffected developers could choose to focus on marketing their apps directly to Apple Inc's App Store and Google Inc's Play market - two platforms that compete with Facebook.
"Facebook is in a platform battle that they're losing right now," said Nabeel Hyatt, a partner at Spark Capital, a venture capital firm that has backed rival social media companies like Twitter and Tumblr. "When we have startup companies coming in and presenting about where they're going to get users, most of those conversations are aboutiOS and then Android, and then maybe Facebook."
For hot startups, the Facebook platform used to be "the cocktail party you had to be at," Hyatt added. "It's becoming just another cocktail party."
For years, startups like Viddy and news apps like The Washington Post Social Reader used automated messages or posts on its users' Facebook pages to lure other users to install its app. But that put them at the mercy of "EdgeRank," the opaque and closely guarded algorithm that Facebook constantly tweaks to control whether an app's posts are broadly exposed to users.
In financial disclosures, Facebook has warned investors that a fundamental challenge in its business model is finding the balance between the "frequency, prominence and size of ads and other commercial content we display" with its user experience. While Facebook is under intense pressure from Wall Street to turn its massive audience into growth in advertising revenue, a lot of the changes that rattle firms like Viddy seem to be more related to Facebook's attempts to retain users.
Viddy's implosion has been spectacular - it fell from 35 million monthly users at its peak last year to half a million recently, according to Appdata.com, a tracking service.
But the collapse is not unique. Branchout, a business networking service built on top of Facebook, raised $25 million last April from A-list backers including Accel Partners. But now it languishes with just 100,000 monthly users on Facebook, down from a high of 39 million, after Facebook limited the automatic notifications that Branchout used to attract users.
The poster child for fallen Facebook stars has been Zynga Inc, the game publisher that shot to popularity, and a lucrative IPO, with viral Facebook games like FarmVille that distributed a deluge of notifications about virtual farm animals before Facebook clamped down.
Zynga, whose shares are trading two-thirds below its IPO price, has since announced that it would loosen its ties with Facebook and develop its own network for gamers. Zynga declined to comment for this article.
PUSH-AND-PULL
The fate of Facebook apps have drawn attention to the perennial push-and-pull between large technology companies and smaller developers. Like tech industry heavyweights before it, Facebook recognizes it can expand its market power and offer new features by fostering a thriving ecosystem. But those relationships have historically been fraught.
In the 1990s, the Windows operating system rose to dominate personal computing, but its maker Microsoft Corp was accused of favoring its own browser and word processor over its competitors' offerings like Netscape and WordPerfect.
Similarly, Apple Inc's iPhone dominated smartphone sales 15 years later with the help of third-party apps - but it, too, has periodically attracted attention from the Federal Trade Commission over whom and what it lets into its App Store and iTunes platforms. Recently, Twitter has also clashed with some third-party developers.
Facebook first opened its programming interfaces to outside developers in 2007. The company later rolled out log-in credentials for third-party sites and then the powerful "Open Graph" protocol, which gives apps developers access to troves of data.
The company said it expects developers to contribute interesting content - rather than game the system for growth.
"Facebook is a story-telling device," said Purdy, the Facebook executive. "Driving millions and millions of installs is not why we built it."
"There are always going to be players who, for whatever reason, aren't seeing what they want or feel disenfranchised," he added. "But when we look at the totality of the ecosystem, it's never been stronger."
And current and former Facebook employees argue that the company has sought to communicate to its developers that they shouldn't be over-reliant on Facebook.
In Zynga's early years, for example, Facebook employees advised Zynga CEO Mark Pincus on renaming Zynga's highly successful "Texas Hold'em" poker game on Facebook to "Zynga Poker," in order to strengthen Zynga as an independent brand and differentiate it from competing gaming companies, people close to the situation said.
COMPETITIVE PRACTICES
But there are signs that Facebook may not be as collaborative as it once was.
In January, Tom Katis, the chief executive of Voxer, a voice-messaging app that has raised $30 million from Institutional Venture Partners and Intel Capital, received an email from Facebook representatives requesting a phone call. Facebook told Katis that it intended to cut off Voxer, which had used Facebook's log-in credentials for over a year, from accessing Facebook's friends data because it did not share its own data with Facebook - and because Voxer replicated communications features that Facebook wanted to build itself.
Katis has brushed off the incident, saying he is confident Voxer will continue to grow swiftly independent of Facebook.
"We were flattered that Facebook called us a competitor," Katis said. "It's their platform. They can do whatever they want. But it's just another cautionary tale."
Later that month, Facebook blocked Yandex, the Russian search engine, from crawling through its network. Facebook said that those companies took advantage of its network without sharing any information back.
Facebook's Purdy denied the company is being less collaborative, saying it is seeking to have "nuanced and mature" discussions with developers when conflicts arise.
Although there are no indications that the Federal Trade Commission, which has wrestled with Facebook over privacy issues, has looked into its competitive practices, experts broadly say that this is all but assured as Facebook continues to grow.
"One of the issues that Facebook faces that is also true for Google is that it supports so many developers," said David S. Evans, a professor at the University of Chicago Law School who has advised Google and Microsoft on antitrust matters. "Just by the law of large numbers, you're going to get complaints. That's a real vulnerability for the big Internet platforms."
For now, developers say they are frustrated mostly because they cannot anticipate the vagaries of Facebook's EdgeRank. Last week, Facebook took the rare step of publicly refuting comments by a New York Times writer who opined that the social network might be artificially suppressing user posts as a way to encourage people to pay to disseminate their posts.
"You have the combination of few tools available to build your business and no clear lines of communication," said the founder of a startup who spoke anonymously because his company still depends on Facebook for its traffic. "Is it worth it for founders today to quit your job, raise a bunch of money, hire a bunch of people, only to get to a point where it's really hard to get viral?"
REAL BUSINESS MODEL
But even if it left some companies in ruins, app makers who take the long view concede that Facebook's crackdown had an unintended benefit: It helped deflate a social media bubble propped up by unsustainable startups.
"You need a real business model now," said Aaron Ginn, an expert in Web traffic development who formerly worked for StumbleUpon, a website discovery app. "You can't rely on viral growth."
Branchout Chief Executive Rick Marini said his company was in the midst of improving its own offering.
"Facebook made several changes to the viral channels and app developers needed to react," Marini said. "For Branchout, the silver lining is that we're focusing more on our product development instead of viral user acquisition."
Meanwhile, a much leaner Viddy consolidated operations under co-founder J.J. Aguhob and released a new version of its iPhone app.
O'Malley, the Viddy investor, said in hindsight, the boom in traffic from Facebook - and the stratospheric investor expectations that followed - set the company on the wrong track.
"With the Facebook traffic and with the larger round, did we lose focus on what was important? Yes," O'Malley said. "If you can get traffic from Facebook, great. But don't bank on it."
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Sometimes, Facebook Destroys Startups Built For Its Platform

<a title_source="Huddle" title_caption="Huddle CEO Alastair Mitchell." class="zoomin" href="https://static-ssl.businessinsider.com/image/548ab64fdd0895b2168b4626-960/huddle-ceo-alastair-mitchell.jpg"><img src="https://static-ssl.businessinsider.com/image/548ab64fdd0895b2168b4626-1200-924/huddle-ceo-alastair-mitchell.jpg" alt="Huddle CEO Alastair Mitchell" border="0" /></a>HuddleHuddle CEO Alastair Mitchell.
After launching in 2006, <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> tech company Huddle <a href="http://uk.businessinsider.com/huddle-is-raising-51-million-in-funding-2014-12">just raised&#xa0;$51 million</a>.
Huddle is a file sharing cloud service, like Dropbox or Box, but it focuses on enterprises like big companies rather than individual consumers. Huddle enables large&#xa0;agencies to share, save, and collaborate on documents online. More importantly, Huddle users can control who has access to which files, so it's more secure.
That extra layer of security is crucial in&#xa0;<a href="Here's%20Everything%20We%20Know%20About%20The%20Mysterious%20Group%20That%20Hacked%20Sony%20Pictures%20%20Read%20more:%20http://uk.businessinsider.com/author/james-cook#ixzz3Laok5jSO">lieu of the recent Sony hack</a> and Edward Snowden's trove of NSA documents.&#xa0;
Huddle isn't really competing against Dropbox and Box, although it does gain business from them. Instead, its main competitor is legacy enterprise software such as Microsoft SharePoint, which companies have often been using for years.&#xa0;
The company's client list is impressive. It works with Apple-owned headphones manufacturer Beats by Dre, international accounting firm KPMG, a host of US government agencies including the office of the Secretary of Defence, and around 80% of the UK's central government agencies.
<a href="http://uk.businessinsider.com/huddle-is-raising-51-million-in-funding-2014-12">The company announced on Thursday that it had completed its series D </a>fundraising<a href="http://uk.businessinsider.com/huddle-is-raising-51-million-in-funding-2014-12"> round</a>, bringing in $51 million in new investment. That's a giant sum for a UK tech company.
Business Insider met with Alastair Mitchell, Huddle's cofounder and CEO, in the company's London office to talk about its rapid growth, and the challenges of building software secure enough to be used on classified government data.
Business Insider: Why is Huddle's office in a different part of London as opposed to the famed "Silicon Roundabout" tech cluster near Old Street.
Alastair Mitchell:&#xa0;We [used to be] right on the roundabout there, so we were literally, as you came out of the Tube, you'd see big Huddle offices with big windows and our names across them. But what's great about that area is that it's full of small, low-cost offices. But they're small, right? So when you get to our size and you're growing up and you need hundreds of people in an office, there just isn't space enough. They're all small offices, so you have to move down to towards the City, which is hilarious. 25% of all the new space in the City taken last year was actually tech firms, which is amazing.
BI: You were one of the very first tech companies to become part of the city's startup scene. What was that like?
AM: When we started, seven years ago, there was really very little. The tech scene was very disparate, there was a bit going up in Cambridge, traditionally the kind of 1.0 stuff: Chips, hardware, and so on. But there was very little going on in London. There was a lot of media, as you know, a tonne of media, some fintech, but there was no real industry. And so we were one of the first to start going, and then there was a small group of us and the first generation of guys and a bunch of really great companies there who are starting to do really well on a global stage, which is great.
We got together, we spent a lot of time together, and gradually together we helped to build a bit of a scene, and then it has really accelerated from there. We're very proud to be at the start of it, but we know it's not because of us, it's just everyone helped. There were many people trying to do the same thing. What's great now is it's proper, it's real, it's big.
BI: Does being a British company work against you when you go to win business in the US?
AM: There is no favouritism, there is no discretion against US or UK companies, the world is a much better place than that. But there are local favourites that are growing up with lots of VCs in their network investing in them. So you have to bust through that, and we're doing that just like Box are trying to bust through that over in Europe with us.
BI: How do you differentiate yourself from companies like Box and Dropbox who are creating similar storage tools for companies?
AM: The first thing is that we do something different. Huddle is all about collaboration, and it's all about security, and it's all about large organisations and enterprises. The first thing is communicating that, and what's nice about that is that this whole content collaboration space, sync and share, storage is huge, and it's exploding. It's a massive great market, and what's happening is that it's starting to mature, so you've got all the consumer guys who are getting great scale, but now being commoditised to hell: Amazon, Google, Microsoft.
BI: You mention security as one of your selling points there. How secure is Huddle?
AM: Control is actually what we care about as a consumer. So in iCloud I want to know...the thing that frustrates me about iCloud, and I've had it, is you take a photo, you delete it on one device, and you think it's then deleted on all devices. It isn't, you look at your iPad and it's still sitting there as one of the things to be deleted. I'm like 'I got rid of that photo!'
So it's control that people want, so that is the same in enterprise. That doesn't just mean IT, big bad IT, it actually means me as a corporate lawyer or as someone working on Apple's supply chain. They care very much about not just security, which is becoming ubiquitous, but really who exactly can see my information as I transmit it.
Beats by Dre are a huge customer of Huddle and they have very similar issues around supply chain, new products coming out, they work with huge manufacturing centres in China, and they're working on these for a year before they get released, and no-one must know about the new products.
So how do they ensure that the information that they're sharing doesn't get leaked? And that's much more than just the security in the system, it's about who has access to it, being able to say exactly the audit trail and the version control, knowing that if you look at a design on your mobile device, I know exactly that you did do that. And if you lose that mobile device, knowing immediately that it should be wiped from the device and no-one can see it. And if you leave the company that I'm working with, knowing immediately that you no longer have access. Literally the minute you walk out the door. Even knowing, and this is how extreme we get, which way your developers face. Do they face to the window or not? We work with a lot of government data, and guess what, who's looking in through the window?
This is the lengths of extremes that big enterprise companies that really care about collaboration and security go to. And that's why enterprises who are working with governments, but also work with people's personal and corporate tax data, the most sensitive information, rely on Huddle. That's real security, and that's boring, right? It's why, when you walk in the door, even though as a startup, a small, nimble, agile company, the security levels you're going through to get into this office are pretty high.
BI: So if I'm an unhappy Beats by Dre supply chain worker in China and I want to steal some documents and leave, would I be able to do that if the company is using Huddle?
AM: No, that's the point. Huddle will stop you doing that. And if you did manage to get anything, we would know what you've got.
BI: That kind of control must be attractive to governments as well?
AM: It's very attractive to governments, it's very attractive to large corporates, it's very attractive to anyone who cares about their information.
So here's the interesting paradox about security: Everyone is now more comfortable with the general security of systems. Do you remember back in the day when you first started using e-commerce? You would go in through some crazy banking system and then get redirected back. Then there was the 'secured by' the different finance organisations. Now you just have a little padlock, and no-one even bothers looking, you just assume that the payment site you're going on is secure.
So the same thing is happening with security, everyone's getting more comfortable with putting their stuff in the cloud, but, at the same time, everyone is getting much more paranoid about the control of that information once it gets into the cloud.
BI: If I'm a company in France and someone in the US views one of my documents, will I get an alert?
AM: Yes, you can do that, absolutely. Well you can control if you decide not, you can control that they can't. So you can lock down access by IP, domain, by geographic location, by the data centre they've been invited into.
The idea of a huddle is that if you're in the huddle, you can work with me, you can share my information. If you're not in a huddle, you can't. Now that's huge because 99% of all the other systems out there, including our great competitors Box and people like that, are open systems. So in other words, if I create a folder, anyone can access my folder and get to it via a link unless I shut it down. It's the reverse, it's open by default, closed by permission. Huddle is closed by default, open by permission. If you Google enough, you can find Box and Dropbox links available on the web of amazing amounts of information from corporates because they haven't locked it down, it's insane. It's terrifying.
BI: Do you do that when you go into companies and pitch?
AM: Yeah, and often we don't have to because companies have done that themselves. Often the journey goes 'we bought Dropbox because it's great, and Dropbox is great, it's a great system. Lots of people are using but we're scared of security, just general vague security. So we bought Box because it's supposed to be a slightly more secure version of Dropbox.' And Box is great as well, they're amazing guys, love 'em. But then they Google, and they look out on the web, and actually all these links are available out there in Box. And they're like 'Holy crap,' you know. And it's just a storage tool, so now we want to go to next level and they buy Huddle. So that's a really common journey, and we pick up a tonne of customers on that journey.
BI: How do you change the software for use in government?
AM: Well the answer is that you don't. That's the reason why we're so popular in government, it's about 30% of our business so we're not dominant, but it's a big chunk of our business.
I was just at an event for the UK government with Francis Maude, who's the cabinet minister, and Liam Maxwell who is the CTO for the UK government, and Vivek Kundra who is the ex CTO of the US government. So the great and the good. And we were one of only three people who they asked to present to the whole of this group. But the reason we're there is because we're not doing anything different for government. We are providing a system that is secure and useful enough for governments to use. Number two is it solves a real problem because government is very collaborative. It turns out they're the most collaborative organisation you can find because they create policy. But thirdly, they don't want bad software, no-one wants bad software and it just because you work in government doesn't mean you want it. So what you do is you provide a great bit of software that works great, that is just as good as anything you've used at home, but that is available to a government user, solves a problem for them and, importantly, it's secure enough for them. And that's actually the difference.
Really, what we do is we spend our time getting all the security and accreditation so that they can use it. But it's the same software. And that's really important. The great thing is that by doing all this work on security and accreditation for government, everyone else benefits. So that's why KPMG come and use us. They think 'Well, hang on, if you've gone through all this work, that's the best of the best, so we get that benefit as well.' But that's the great thing about the cloud: Once you've done it for one client, you've done it for everyone.
BI: Would a military ever use Huddle?
AM: Again, it depends on what you're trying to share. So, no, we don't have [them]. They tend to work at levels of security that are way higher and work on very small, very discreet networks, to the point where you literally have to be in a room in a building in Langley. It's that level of encryption. So no, we don't work with that, but we do have the office of the Secretary of Defence working with Huddle, but it's not for military purposes. It's relatively, for the government, unclassified information, and it's all about families and people working together and so on.
BI: So the US government has around six different levels of classified information, and that sounds like, I believe, levels one to two. Which levels of classification does Huddle work with?
AM: We're up to about the middle of that, about three. We can offer for it for zero to three.
BI: So Amazon does levels three to four?
AM: They have their own data centre that is designed for the Department of Defence that is three to four. No-one really does it at scale above that. Most of the information that governments work on are nought to three. Some cases up to four.
BI: How is working with the US government different to working with the UK government?
AM: It's very similar, except, and here's where I would big up my home country, the UK government is doing some amazing things, actually.
The US government lead the way. Vivek Kundra, who worked for Obama, came in and said there should be a cloud-first policy in US government. We run thousands of data centres, we're spending hundreds of millions of dollars a year in one department on things like Sharepoint legacy technology, that should stop. We should move to the cloud. They lead the way, which is amazing, but the UK government has really accelerated it and what they're doing, which is very interesting, is creating platforms, they created a whole G-Cloud procurement framework so small businesses can sell to government more easily, they're on a real push to really be much more agile, develop their own services, break up huge SI contracts. They're actually very similar, they're trying to solve the same problems, cost is important, value, delivering real news technologies, but the UK government is actually one of the most leading, if not the most leading government globally at this stuff. It's phenomenal.
Believe it or not, the other one that's amazing globally is Estonia. And if you ranked them it would be Estonia and the UK first, then you've got people like South Korea, New Zealand is very very advanced, then the US and a whole bunch of others.
BI: The Estonian government is easier to work with than the US government?
AM: They are revolutionary, the way the Estonian government works. It's a small country, about a hundred million people, so it's easier. For instance, they're launching a completely open ID system which allows you as an Estonian citizen to access all your systems online, which now the UK government is doing. It's brilliant, really really revolutionary. The US government lead the way, though. They just have huge scale, so we're delighted to work with them, and we work with four of the biggest agencies now in the US government.
BI: So how long will it be until a Huddle IPO?
AM: We're probably a few years away from it still. But who knows, we're growing really fast. It's an extraordinarily rapid rate at the moment, which is very exciting. There's lots of of news to announce in a while. Lots of things to do. Honestly, we're just focusing on building a big business fast. Really fast.

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