Infinity Infoway Ltd IPO

The company's revenue from operations has significantly increased from Rs. 517.17 Lakhs in FY 2022-23 to Rs. 1,017.16 Lakhs in FY 2023-24 and to Rs. 1,319.23 Lakhs in FY 2024-25 resulting in CAGR of 36.64% over the last 3 fiscal years. Similarly, our profits have significantly increased from Rs. 93.86 Lakhs in FY 2022-23 to Rs. 346.62 Lakhs in FY 2023-24 and to Rs. 419.15 Lakhs in FY 2024-25 resulting in CAGR of 64.68%. If we are unable to sustain or manage its growth rate our business operations and results of operations may be adversely affected, and this rate of growth may not be achievable in the future.

The company's business will suffer if the company fails to anticipate and develop new services and enhance existing services to keep pace with rapid changes in technology and the industries on which the company focus.

Failures to offer customer support in a timely and effective manner may adversely affect its relationships with the company's customers.

The company has not been granted the patent application filled in respect to Zerotouch technology and is still under examination by Indian Patent Office. Any failures to obtain such patent might lead to loosing of competitive advantage of the company and can adversely affect its business.

There have been certain inadvertent inaccuracies, delay and non-compliances with respect to certain regulatory filings and corporate actions taken by the Company. Consequently, the company may be subject to regulatory actions and penalties for any past or future non-compliance and its business and financial condition may be adversely affected.

Intense competition in the market for technology services could affect the company's pricing, which could reduce its share of business from clients and decrease the company's revenues and profitability.

The company is dependents on and derives 63.44%, 83.47% and 71.45% of its revenue from the company's top 10 key customers for the Fiscal Year 2025, 2024 and 2023 respectively. Delay or Cancellation of orders by any one or all of its top customers could have a material and adverse effect on the company's business, results of operations and financial condition.

One of the Objects of the Issue is to use the Net Proceeds to invest up to Rs. 375 Lakhs towards the development a new product called ZEROTOUCH DaaS (Device as a Service) specified in the "Objects of the Issue - Development of the Product ZEROTOUCH DaaS" which is subject to a variety of risks related to the non-completion of various stages as outlined in the schedule of implementation of Proposed project as specified on page 93. Delays or failures in completing any of the milestones in the schedule of implementation could adversely affect the overall project completion and subsequent operations.

Failures to continue investing in Research and Development (R&D) activity may harm its business growth.

The Company requires significant amounts of working capital for continued growth. The company's inability to meet its working capital requirements may have an adverse effect on the results of operations. Further, failures to manage the company's inventory could have an adverse effect on its sales, profitability, cash flow and liquidity.