Data analytics startup Course5 Intelligence on Tuesday said it has closed its first external funding round at $53 million (around Rs 437 crore).
While in the first tranche, Course5 had raised $28 million from 360 One Asset Management Ltd (formerly IIFL Asset Management Limited) Tech Fund, in the second tranche it secured $25 million led by Nuvama Crossover Series of funds, with participation from Carnelian Asset Advisors Pvt Ltd.
A person close to the development told VCCircle that the company raised the capital at a valuation of $250 million.
Course5 will use the fresh funds to further its inorganic growth through mergers and acquisitions as well as deploy additional investments in its artificial intelligence labs for the creation of AI-driven intellectual property.
“We are seeking for two-three types of acquisitions. One is we are looking at companies that bring us either access to IP access to capabilities or access to customers, or some combination of these three. In terms of size, we're looking mostly at companies that are in the $10 to 20 million revenue size that have established a good solid business or growing. We are also going to look for some deep tech AI startups” said Ashwin Mittal, chairman and chief executive officer of Course5.
The company, which has earmarked around $80 million from its own cash reserves and cash accruals for M&A activities, said it is also in talks with five such prospects and aims to make two acquisitions in the next 12 months.
Course5 helps its customers solve issues related to markets and supply chain using AI. It counts Fortune 500 companies across retail, technology, media and entertainment, amongst others as part of its client portfolio.
It has about 1,300 employees across India, UAE, the UK, Canada and the US.
The company clocked $50 million in revenue in FY23 and expects to cross $100 million in revenue in the next financial year, as it aims for an initial public offering in the coming 18-24 months.
With this funding, Course5 joins a host of data science-based companies which have raised capital in the last 1.5 years.
In 2022, Tredence raised $175 million in its Series B fundraise round led by Advent International. Fractal Analytics raised $360 million from PE firm TPG in the same year as well, entering the unicorn club, while The Math Company pocketed $50 million last year.