Through its incubator, Society for Innovation and Entrepreneurship (SINE), IIT Bombay has already seen significant gains from startup lists like ideaForge and is now poised for another windfall from Sedemac Mechatronics’ IPO.
With companies like Atomberg Technologies and Gossip also seeking public listings, the institute’s long association with technology startups is starting to deliver significant financial returns.
ideaForge: An early success story
One of the prime examples of this success is the technology of ideaForge, India’s leading drone manufacturer. The company was founded in 2006 by IIT Bombay alumni Ankit Mehta, Rahul Singh and Ashish Butt and was housed at SINE during its formative years.
ideaForge launched its IPO in July 2023 and the issue attracted massive investor interest, which was subscribed about 106 times. The stock is listed at a strong premium, essentially doubling shareholder wealth for the first time.
For SINE, listing translates into a meaningful opportunity to pay. The incubator held about 1 lakh shares in the company before the IPO. At the upper end of the IPO price band of Rs 672 per share, the share value was estimated at around Rs 6-7 crore.
SINE partially exited during the offer for sale, selling around 22,600 shares and realizing around Rs 1.52 crore from the transaction, while continuing to hold a stake in the company.
Sedemac: A very big wind
The institute is now poised to further benefit from the IPO of Sedemac Mechatronics, another startup that emerged from the IIT Bombay ecosystem.
Sedmac was founded in 2007 by Shashikant Suryanan, associate professor in the institute’s mechanical engineering department, with other early team members who were students or researchers affiliated with the campus.
The company has grown into a manufacturer of electronic control units and genset controllers used in two-wheelers, electric vehicles and industrial applications.
SINE backed the company in the early stages and currently holds 4.08 lakh shares, representing 0.92% stake.
At the upper end of the IPO price band of Rs 1,352 per share, SINE’s holdings are valued at around Rs 55 crore.
As part of the offer for sale, the incubator plans to sell 2.04 lakh shares. At the IPO price, this share alone will fetch around Rs 27.58 crore.
The rate of return is significant given the acquisition price. SINE acquired these shares at an average of Rs 0.01 each, which means selling 2.04 lakh shares cost only around Rs 2,040.
At the IPO price, the sale implies a gain of approximately Rs 27.58 crore and a return of approximately 1.3 lakh times the original investment. Even after the partial exit, SINE will continue to hold another 2.04 lakh shares in the company, leaving it with a remaining stake worth Rs 27-28 crore at the IPO price.
More IPO candidates are emerging
IIT Bombay’s startup ecosystem could see more companies go public in the coming years.
Consumer device company Atomberg Technologies is among the startups seeking a public listing. The Temasek-backed company is weighing an IPO in Mumbai that could raise about $200 million, according to Bloomberg.
Founded in 2012 by IIT Bombay students Manoj Meena and Sibartha Das, Atomberg started by making energy-efficient ceiling fans and has since expanded into products like mixer grinders, water purifiers and smart locks.
The company has attracted many famous investors over the years. In 2023 it raised $86 million in funding from Temasek, Steadyview Capital, Forest Ventures and Inflexor Ventures.
Another startup with links to IIT Bombay’s incubation ecosystem is Gossip, a conversational messaging platform founded by Birud Sheth.
The company received early incubation support from SINE during its early years and has since grown into one of the world’s largest messaging platforms for businesses.
Gossip recently raised $60 million in fresh funding from Globespan Capital Partners along with debt financing from EvolutionX Debt Capital. The San Francisco-headquartered company is also planning to shift its domicile to India ahead of a possible public listing in the country in the next one to two years.
Founded in 2004, Gossip processes more than 120 billion messages a year for 50,000 businesses in 130 countries.
From campus labs to public markets
For IIT Bombay, the growing list of IPO-linked startups illustrates how academic incubation programs are increasingly driving India’s startup economy. Through SINE, the Institute has supported hundreds of startups over the past two decades. While most remain private, a few have now reached the stage where they can explore public markets.
As companies like Sedemac, Atomberg and possibly Gossip approach listing, IIT Bombay’s long-term experience with technology incubation is starting to translate into significant financial returns along with entrepreneurial success.
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