Bonbloc Technologies Limited IPO

01At a glance

What the company does: builds AI-powered software-as-a-service products and AI-powered IoT products, and provides technology services, digital transformation and data solutions, with delivery from India (DRHP p.21). Its flagship platform, Onelign, provided 30.87% of FY25 revenue (DRHP p.30).

Who pays it: customers in the United States, 99.77% of FY25 revenue, and in food and groceries, 95.83% (DRHP p.29, DRHP p.30). The top customer was 75.44% of FY25 revenue and the top five 99.95% (DRHP p.29). Sales to US customers pass through the promoter Bonbloc Inc. and a US subsidiary, which the document calls "conduits" for its services (DRHP p.36).

Why it is raising money: ₹1,360.22 million for developing its products and platforms, ₹129.17 million for laptops, and the rest for unidentified acquisitions, other strategic initiatives and general purposes (DRHP p.22).

How fast it has grown: revenue from ₹198 million in FY23 to ₹372 million in FY24 and ₹1,034 million in FY25 (DRHP p.23).

The one thing to understand: a small, fast-growing exporter with one real market and very few customers. Bonbloc Inc., which owns 97.49% of the company, was the buyer of 98.11% of FY23 revenue and 98.74% of FY24 revenue; names of end customers behind the top-customer figures are withheld for confidentiality or lack of consent (DRHP p.22, DRHP p.25, DRHP p.29).

02The business, in plain words

An offshore software developer builds and runs supply-chain tracking, compliance and analytics software for US companies, with engineers in India and sales through US group entities.

A US food distributor needs cold-chain tracking → the contract is placed through Bonbloc's US entity → the Chennai team builds and runs the software and devices on the Onelign platform → the US entity pays the Indian company for the services.

Earnings equation: Profit ≈ billable services and subscriptions − engineering staff cost − development spend. EBITDA margin was 43.59% in FY25, and revenue per employee ₹4.71 million (DRHP p.103).

03Where the money comes from

Source: DRHP p.25, DRHP p.29, DRHP p.30. In FY25, ₹817.89 million, or 79.12% of revenue, came through Bonbloc Technologies USA Inc., a subsidiary incorporated in July 2024 (DRHP p.33). The FY24 top-customer figure of ₹367.62 million is 98.74% of revenue, not the 98.86% printed (our arithmetic, DRHP p.29).

04The growth record

Source: DRHP p.23, DRHP p.103, DRHP p.274.

Our arithmetic: revenue compounded about 128.4% a year from FY23 to FY25 and profit about 298.7% (DRHP p.23).

05What the growth is made of

Mostly one customer relationship. FY25 revenue rose by ₹661 million, and the top customer alone accounted for ₹779.89 million of FY25 revenue (our arithmetic, DRHP p.29). The document says it recently won two projects, one from a mini-ratna public-sector undertaking valued at ₹1,840 million and one from a private company valued at ₹750 million (DRHP p.209).

06Earnings quality

Operating cash flow was ₹172.91 million in FY25 against profit of ₹334.87 million, as trade receivables rose from ₹0.36 million to ₹206.42 million (DRHP p.270, DRHP p.274). The company also carried ₹74.99 million of loans as current assets at March 2025, against none a year earlier (DRHP p.270). Spending on intangible assets under development was ₹75.42 million in FY25 (DRHP p.274).

07The balance sheet

Source: DRHP p.23, DRHP p.270. The only term loan is ₹4.17 million at the wholly owned subsidiary Ambient Business Solutions Private Limited (DRHP p.38, DRHP p.46).

08What the money is for

Source: DRHP p.22. The last line may not exceed 35% of gross proceeds, and each part of it 25% (DRHP p.22).

09Who is selling

Source: DRHP p.21, DRHP p.22. The shares offered are about 15.5% of the company's equity (our arithmetic). Bonbloc Inc.'s average cost per share is described as negligible (DRHP p.26).

10Promoters

The promoters are Durai Appadurai, Sourirajan and Bonbloc Inc. (DRHP p.21). The individual promoters are US citizens and hold no shares directly; their interest is through Bonbloc Inc. (DRHP p.22, DRHP p.38, DRHP p.49). Durai Appadurai is managing director and has been a director since February 2021 (DRHP p.245).

11Who already owns it

Source: DRHP p.22. The last row is our arithmetic.

12What changed just before the IPO

• US subsidiary: Bonbloc Technologies USA Inc. set up in July 2024, 79% of FY25 revenue (DRHP p.33).

• New subsidiary: ₹77.99 million recorded as investment in Ambient Business Solutions in FY25 (DRHP p.25).

• Trademarks: applications filed in May and September 2025 (DRHP p.33).

• Public company: converted from a private limited company in June 2025 (DRHP p.436).

• Share split: each share of ₹10 was sub-divided into ten shares of ₹1 in July 2025 (DRHP p.78).

• Bonus issue: 19,190,700 shares on 127,938, a ratio of 150 to one, on 25 July 2025 (DRHP p.76).

• Last allotment before the IPO: 104 shares on the exercise of employee options at ₹1,500 a share on 22 July 2025, before the bonus (DRHP p.76).

• Auditors: the previous firm resigned on 3 February 2025 over staff constraints and Suri & Co. is the statutory auditor (DRHP p.69).

13Capacity and expansion

Capacity is engineers and platforms. The proceeds fund product development and laptops (DRHP p.22).

14Market size and industry structure

The F&S report cited in the offer document forecasts the US AI market at USD 78 billion in 2025 rising to USD 431 billion by 2030, and India's at USD 10.9 billion rising to USD 43.5 billion (DRHP p.21). Those projections are F&S's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• Regulated supply-chain niches: traceability and compliance software (DRHP p.209).
• Patents and copyrights applied for (DRHP p.33).

Against that: near-total dependence on one country, one industry and a handful of customers, unregistered trademarks, and technology change (DRHP p.24, DRHP p.25).

16Peers the company named

Source: DRHP p.101, DRHP p.102. The peers' average P/E is 35.83 (DRHP p.101).

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• One customer. 75% of FY25 revenue (DRHP p.29).
• One country. Over 98% from the US (DRHP p.24).
• One industry. Food and groceries, 96% (DRHP p.30).
• Group conduits. Sales route through the promoter and a new subsidiary (DRHP p.36).
• Brand. Trademarks not yet registered (DRHP p.25).

18Litigation and regulatory matters

None. The document lists no outstanding proceedings by or against the company, subsidiaries, promoters or directors (DRHP p.23, DRHP p.24).

19Related-party transactions

Sales of services to Bonbloc Inc. were ₹194.37 million in FY23, ₹367.62 million in FY24 and ₹247.54 million in FY25; purchases of services from Bonbloc Technologies Mexico were ₹48.02 million in FY25 (DRHP p.25).

20What the offer document does not say

In the sections read for this study, the document does not give:

• Who the end customers are behind Bonbloc Inc. and the US subsidiary (DRHP p.29).
• How transfer prices with Bonbloc Inc. and the US subsidiary are set, in the pages read.
• Who owes the ₹206.42 million of receivables, in the pages read.
• Who the ₹74.99 million of loans were made to, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. Who is the top customer, and how long is its contract?
2. How much of the margin stays with Bonbloc Inc. and the US subsidiary rather than the listed company?
3. Why did receivables rise from almost nothing to ₹206 million in FY25?
4. When will the two new Indian projects turn into revenue?
5. Why is the promoter offering 30 million shares at listing?

1Sources and cited facts

This study was read from 1 document the company filed. The 54 figures it cites are listed under the document each came from, with the page and the sentence as printed.