Dove Soft Ltd. IPO

Dove Soft

• Dove Soft is coming out with an initial public offering (IPO) of 66,00,000 shares in a price band of Rs 104-111 per equity share.
• The issue will open for subscription on September 30, 2026 and will close on October 5, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 10.40 times of its face value on the lower side and 11.10 times on the higher side.
• Book running lead manager to the issue is Swastika Investmart.
• Compliance officer for the issue is Archit Tundia.

Profile of the company

Dove Soft is an integrated provider of cloud communications solutions in India. commonly known as a CPaaS (Communications Platform as a Service) provider. It offers a wide range of services through channels such as SMS, RCS, Voice, WhatsApp, Email, and other digital platforms. Its solutions enable businesses to communicate efficiently with their customers through reliable and scalable messaging and engagement tools. 

It provides services to enterprises as well as over-the-top (OTT) platforms, including transactional SMS, WhatsApp messaging solutions, voice services, automated voice call solutions, email communication, and various digital products. Its organization acts as an aggregator between telecom operators and clients, ensuring seamless connectivity and delivery of communication services.

It serves clients across multiple industries, including Telecom, Information Technology, Travel & Tourism, Entertainment, Media, Advertising & Events, Retail, Real Estate, Healthcare & Cosmetics, Banking, Financial Services & Insurance (BFSI), Automobile, E-commerce, and Food & Beverages. Its solutions help businesses effectively manage customer communication, enhance engagement, and streamline their operational processes. Its sales team actively engages with existing and potential clients to promote its range of communication solutions. 

Proceed is being used for:

• Meeting the working capital requirements 
• General corporate purposes

Industry overview

The Communications Platform as a Service (CPaaS) industry forms an integral segment of India’s information technology– enabled digital infrastructure, providing cloud-based software platforms that enable enterprises and public sector institutions to integrate programmable communication capabilities into their applications and operational workflows. CPaaS solutions facilitate the delivery, management, and automation of messaging, voice, email, and identity verification services through application programming interfaces (APIs) and software development kits (SDKs), supporting omnichannel communication across digital and voice-based channels.

The industry operates as a software-driven intermediary layer between telecom networks, digital communication channels, and enterprise applications, allowing organizations to deploy scalable communication solutions without owning or managing underlying telecommunications infrastructure. CPaaS platforms are used across transactional, promotional, service, and automation-led communication use cases, including customer authentication, service notifications, marketing outreach, customer support, and workflow automation. Key end-user segments include financial services, e-commerce, information technology, healthcare, logistics, education, and public sector institutions.

The India IT (CPaaS) industry operates within a evolving policy and regulatory environment. Government initiatives aimed at digitalisation, digital public infrastructure, artificial intelligence, digital payments, broadband and telecommunications have supported the expansion of digital communication requirements across government, BFSI, fintech, e-commerce and enterprise applications. At the same time, regulations relating to commercial communications, data protection, consent management, authentication and communication traceability have increased compliance requirements for CPaaS providers.

Pros and strengths

Sustainable business model and consistent financial track record: The company has established a sustainable and scalable business model driven by the growing demand for enterprise communication and digital engagement solutions. It specializes in delivering a comprehensive suite of services including SMS, RCS, Voice, WhatsApp, Email and other digital channels. It provides services to various enterprises and over-the-top (OTT) platforms through services such as transactional Short Message Service (SMS), WhatsApp, Voice, Interactive Voice Response (IVR), automated voice calls solution, E-mail and Digital Products. These services enable clients to engage with their end customers effectively and in real-time, making the company a critical technology enabler for sectors such as BFSI, e-commerce, logistics, healthcare, government, and education. The business operates on an asset-light model, generating recurring revenues from both volume-based (pay-as-you-use) and subscription-based billing formats.

Diversified service portfolio resulting in lesser dependence on a single industry, product or services: The company has a diversified range of services and it serves a number of industries ranging from Telecom, Information Technology, Entertainment and Media, Travel Tourism, Real Estate, Advertising and Events, etc. Its diversified service portfolio and customer base aligned with increasing market demand is a key component of its growth and success. This reduces its dependence on a single product or services and also enables it to reduce its exposure to a sector specific declines, local or regional economic downturns, disruptions from political circumstances and/or natural disaster.

Scalable delivery platform supported by robust infrastructure: Its cloud-based delivery platform enables it to build and manage applications without having to create and maintain the underlying infrastructure for each client. It enables to provide enterprises with solutions to operate applications without purchasing, configuring or managing the underlying hardware and software. It currently operates at a throughput per second (TPS) capacity. Its all applications are deployed on cloud servers.

Risks and concerns

Dependence on limited number of customers: The company is dependent on a limited clients for a substantial portion of its revenues. The Company’s revenue from operations is significantly concentrated among its top five customers, which contributed 69.82%, 68.20% and 76.77% of the Company’s revenue from operations for the years ended March 31, 2026, March 31, 2025 and March 31, 2024, respectively. A reduction in the services it performs for certain clients, or the loss of a major clients could result in a significant reduction of its revenue. Factors that may result in a loss of a clients include its service performance, reduction in budgets due to macroeconomic factors or otherwise, shift in policies and political or economic factors or changes in their outsourcing strategies. There is significant competition for the services it provides, and it is typically not an exclusive service provider to its large clients. These factors may not be predictable or under its control. Significant pricing or margin pressure exerted by its clients could also adversely affect its business, financial condition and results of operations.

Revenue is substantially dependent on clients located in the Northern and Western Regions of India: The company has derived a substantial portion of its revenue from services offered to clients based in Northern and Western part of India. The North Zone contributed 60.07%, 64.63% and 71.02% of total revenue from operations during the Fiscal Years ended March 31, 2026, 2025 and 2024, respectively, while the Western Zone contributed 29.33%, 32.34% and 26.67%, respectively, during the corresponding periods. Any decline economic health of such regions could adversely affect its business, financial condition and results of operations.

Business operates in highly competitive and rapidly evolving markets: The markets it operates in are competitive in nature and exhibit rapid changes driven by technological improvements and advancements, emerging new or alternative services and changing client preferences and demands. Market participants often need to invest significantly in research and development to stay competitive. Anticipated competition escalation is fuelled by new entrants attracted by industry opportunities and existing competitors seeking to expand their service Offerings. The possibility of consolidation among competitors also poses a potential competitive disadvantage for us. As it ventures into international markets, it may have to compete with local and global providers of messaging services and telecommunications value-added services. Its success depends on its ability to swiftly adapt to the evolving market dynamics by enhancing features and reliability in its existing services and solutions. Any inability to respond to such changing conditions could adversely affect its business and results of operations.

Outlook

Dove Soft is cloud-communication platform service providers to enterprises, over-the-top (OTT) players and mobile network operators. Range of services include SMS, WhatsApp, Voice, IVR, OBD solution, Virtual Number (Long Code), Short Code E-mail & Digital Products. It offers a range of cloud-communication services to clients across diverse sectors including BFSI, Media and Entertainment, Tourism, Retail, FMCG, E-commerce, Logistics, Healthcare, Hospitality, Pharmaceuticals etc. On the concern side, it primarily relies on its top 10 service providers for the procurement of core services essential to business operations. Its operations require seamless integration with key messaging platforms, network providers, and cloud infrastructure services, which constitute a significant portion of its total operational expenses. Dependency on a limited number of service providers could adversely affect its financial condition and results of operations.

The company is coming out with a maiden IPO of 66,00,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 104-111 per equity share. The aggregate size of the offer is around Rs 68.64 crore to Rs 73.26 crore based on lower and upper price band respectively. On performance front, the company's revenue from operations for the financial year 2025-26 stood at Rs 27,398.01 lakh, marking an increase of 45.94% compared to the previous financial year 2024-25, where revenue was Rs 18,773.86 lakh. The Profit After Tax (PAT) for the financial year 2025-26 amounted to Rs 2,340.42 lakh, in contrast to Rs 1,654.00 lakh in the financial year 2024-25.

With its position in the cloud-communication space coupled with the anticipated growth in this sector, it intends to continue to grow in the markets where it currently operates and further expands its offerings in additional markets. It intends to meet the requirements of a broader range of global enterprises. In order to attract and secure new clients, it will continue to develop its network of offices to increase awareness amongst enterprises. Currently, it is operating in Dubai through one of its Subsidiary entities namely Dove Soft Global FZCO. In addition to the aforementioned, it continues to target expansion into newer geographies directly through strategic acquisitions.