Smartphone care and warranty provider Servify is looking to close a string of acquisitions to expand its service categories before it files papers for a public listing.
Like several initial public offering (IPO)-bound companies, Servify has taken a step back to wait for markets to stabilize amid the ongoing war in West Asia before filing its draft papers. It joins the list of companies such as Curefoods, Turtlemint, Inframarket, and Leap India that have taken a calibrated approach to a public listing.
“We're in the middle of some initiatives which will likely help us become a larger entity than we are currently,” company founder and chief executive Sreevathsa Prabhakar told Mint.
The Mumbai-based company is pursuing acquisitions across its core smartphone care business and a luxury goods vertical launched at the end of FY25. In the luxury segment, covering high-end watches, bags, and eyewear, Servify is targeting companies with some scale rather than building from scratch.
“We said let's do this (acquisitions), because it only makes us that much bigger as a company. We can also probably demand a premium when we do head to the public markets,” according to Prabhakar.
Servify is scouting firms in India and international markets, with a focus on bringing in companies whose technology can improve operational efficiency and drive down costs further.
Deferred IPO
The company had initially planned to file its draft red herring prospectus in the March quarter to raise $300 million from public markets at a $1.5-2.3 billion valuation.
The amount Servify is looking to raise hasn't changed, with the company planning to earmark $100 million for fresh capital and around $200 million for secondaries.
Prabhakar said the paperwork is ready and the company is waiting for macro conditions to stabilise before filing the draft papers with the markets regulator. “It could be two months, four months, even six months or more, but in all respects, we're ready.”
The company is also eying a pre-IPO round to bring in anchor investors, with a large secondary component aimed at cleaning up its cap table.
In January, the company raised $15 million in a round where $3-4 million comprised a primary component, while the balance amount was secondaries to give angel investors, early institutional funds and early employees some liquidity.
“We wanted to consolidate the shareholder base,” said Prabhakar. Early investors in the company include Blume Ventures and Japan-based global investor Beenext.
Improving financials
Servify's operating revenue in FY25 climbed to ₹781 crore, from ₹675 crore a year earlier. The company narrowed its losses in the year to ₹85 crore from ₹99 crore in FY24.
Higher expenses in FY25 were driven by international expansion and consolidation of overseas operations, according to Prabhakar, jumping to ₹876 crore in FY25 from ₹784 crore a year earlier. “While setting up new markets and verticals you need to invest accordingly. There's setting up licences, offices, people. But we're optimising for the long run.”
Prabhakar claimed the company had turned profitable in FY26, a key milestone ahead of its public markets listing. However, given that the company's books are still being audited, he declined to share numbers.
The company has been leaning on artificial intelligence (AI) to reduce its operating expenditure. Servify has built its own voice bots for customer support, claims verification and administration, cutting reliance on third-party services.
Servify has paused hiring for roles in development and products, as well as customer support, as around 60% of the code is written by AI. “Our principle is that we absolutely not let someone go unless there's really no role for them,” Prabhakar said.
In India, the company competes with OnSiteGo, OneAssist and GoWarranty, while in the US, its rivals include Likewize, Allstate, and Assurant.
The global phone insurance market is valued at nearly $44 billion in 2025, and is expected to grow to $87 billion by 2034 at a compound annual growth rate of 8%, according to market research company Imarc Group.
