Government advisory firm Sapio Analytics is in discussion with multiple private equity and family offices to raise $5 million (around Rs 37.5 crore) by the end of this financial year, Hardik Somani, Chief Operating Officer (COO), told VCCircle.
Somani said that Sapio had received high-net-worth individuals’ (HNIs) soft commitments from India and abroad and is looking to raise the funds at a valuation of $100 million.
The company, in March last, secured $1 million at a $20 million valuation from a clutch of HNIs.
“As opposed to traditional fund raising rounds, Sapio is focussed more on the growth aspect. We shall be using these funds across product development and expansion, majorly into India’s tier 3 and 4 cities,” Somani added.
Sapio Analytics, which has its offices in Mumbai, Palo Alto and London, was set up by Hardik Somani, Ashwin Srivastava, Shripal Jain, Arpit Palod and Viral Vora. It helps government on policy making decisions by leveraging advanced technologies, like artificial intelligence.
Currently, Sapio works with the governments of Uttar Pradesh, Telangana, Delhi and Kerala, among others.
Somani claimed that Sapio had received interest from investors due to its unique approach of data collection, analytics and monetization into th3 B2G (business to government) as well as business-to-consumer (B2C) sector and the team it brings together.
Prashant Nikam, a former Railway Accounts Service officer who was later appointed as the Director of Indian Police in the Home Affairs ministry, has joined Sapio Analytics as its Founding Chairman.
Because Sapio works with multiple government departments, the company doesn't face direct competition; yet, in terms of data collection, it competes with big tech companies like Google and Facebook. Besides, in terms of consultancy, it competes with Big 4 firms such as KPMG and Deloitte, as well as Mahindra Tech and TCS.
On a global scale, Sapio's closest competitor is Palantir, which is listed on the New York Stock Exchange and works closely with the US government, gathering and analysing data as well as making policy recommendations, Somani said.