Picture a small startup in Lucknow that began life as EduGorilla Community Private Limited, an edtech player. Over time it changed its name and, more importantly, its business. Today it's called Infobay AI Limited, and it works in one of the hottest corners of tech: data for artificial intelligence.
What does that mean?
Every AI model, whether it writes essays or reads medical scans, is only as good as the data it learns from. Somebody has to collect that data, clean it, label it and check it. Infobay AI does exactly that. It builds high-quality datasets and helps companies develop and validate their AI models.
And investors seem to like this business a lot.
In the space of just two weeks, Infobay AI has closed one funding round and lined up a second one that is more than three times bigger. Both are priced at the same number: ₹4,02,155 per share.
Let's walk through it.
On 15 October 2026, Infobay AI's board met in Lucknow and allotted 1,044 Series B CCPS and 50 equity shares to five investors.
If CCPS sounds like jargon, here's the short version. CCPS stands for Compulsorily Convertible Cumulative Preference Shares. They behave like preference shares for now but must convert into equity shares later. Here every CCPS converts into exactly one equity share, so for valuation purposes it's simply one share.
The price was ₹4,02,155 per share: a ₹10 face value plus a premium of ₹4,02,145.
And who wrote the cheques?
Investor | Security | Shares | Amount |
|---|---|---|---|
| Silveranchor AI LLP | 50 Equity + 497 CCPS | 547 | ₹22.00 cr |
| Ashish Kacholia | Series B CCPS | 373 | ₹15.00 cr |
| Urjita Master | Series B CCPS | 124 | ₹4.99 cr |
| Ashish Kishore Ajmera | Series B CCPS | 50 | ₹2.01 cr |
| Total | 1,094 | ₹44.00 cr |
The name that stands out is Ashish Kacholia. If you follow Indian small caps, you know him as one of the market's best-known investors, the kind of name whose portfolio moves get tracked closely. He put in ₹15 crore.
After this round, Infobay AI had 24,449 shares outstanding. Multiply that by the issue price and you get a market cap of roughly ₹983 crore.
So the company is now knocking on the door of the ₹1,000 crore club.
You'd think a company would take a breather after raising ₹44 crore. Infobay AI didn't.
On 27 October 2026, just 12 days later, the board approved a much bigger issue: up to 3,660 Series B CCPS and 50 equity shares, again at ₹4,02,155 per share.
That adds up to ₹149.20 crore (₹1,49,19,95,050, to be exact).
Because it's a preferential allotment, shareholders have to approve it. So the company has called its 1st Extraordinary General Meeting (EGM) of FY27 on 20 November 2026, to be held over video conference.
There are 22 investors in this round. Four of them account for more than half the money:
Investor | Type | Shares | Amount |
|---|---|---|---|
| LC Nueva Advisors LLP | Body Corporate | 746 | ₹30.00 cr |
| SilverX Fund I | Category II AIF | 547 | ₹22.00 cr |
| Bajaj Finance Limited | Body Corporate | 373 | ₹15.00 cr |
| The Argan Fund I – Scheme I | Category II AIF | 248 | ₹9.97 cr |
| 18 other investors | Individuals & corporates | 1,796 | ₹72.23 cr |
| Total | 3,710 | ₹149.20 cr |
A few things jump out.
LC Nueva Advisors writes the biggest cheque of the round: ₹30 crore.
Bajaj Finance, one of India's largest NBFCs, is putting in ₹15 crore. A large, well-known financial institution doesn't show up on an early-stage cap table every day.
SilverX Fund I and The Argan Fund I are two Category II Alternative Investment Funds. In plain English, these are professionally managed pools of money. Together they bring in about ₹32 crore.
The "others" bucket isn't small either. It includes several individual investors putting in up to ₹15 crore each. There are also corporate names like Career Point Infra, Arihant Futures and Commodities and Pocketful Research Capital, plus partners from Alpha Financials and PP Angels.
One small backstory: at its AGM on 14 September 2026, the company had approved an offer of 249 CCPS to The Argan Fund. That allotment never happened, and the offer was withdrawn. The new offer of 248 CCPS replaces it.
This is where it gets interesting.
Two share counts are floating around, and they mean different things:
Shares outstanding: 24,449. These are the shares actually issued today.
Fully diluted shares: 25,960 (as per the EGM notice). This is the count if everything that can become a share, such as ESOPs, actually does.
Here's the picture before and after the new round, all at ₹4,02,155 per share:
Before EGM issue | After EGM issue | |
|---|---|---|
| Fully diluted shares | 25,960 | 29,670 |
| Valuation (fully diluted) | ~₹1,044 cr | ~₹1,193 cr |
| Promoter holding | 57.22% | 50.06% |
| Institutional investors | 6.81% | 8.80% |
| Indian public | 35.97% | 41.13% |
So once the round goes through, Infobay AI will be valued at nearly ₹1,200 crore.
Existing shareholders will be diluted by about 12.3%. The promoters, Rohit Manglik and Shashwat Vikram, are not putting in fresh money this time. Even so, they will still hold just over half of the company, at 50.06%. The company says there will be no change in control.
According to the EGM notice, the ₹149 crore will go towards:
Product development, technology and talent acquisition
Business growth plans
Strengthening the capital base and financial position
General corporate purposes
Once the application money comes in, the allotment has to be completed within 60 days.
In one month, Infobay AI has gone from an edtech-turned-AI company few people had heard of to a business with Ashish Kacholia, Bajaj Finance and two AIFs on its cap table. Its valuation is now close to ₹1,200 crore.
The price hasn't budged: ₹4,02,155 per share in both rounds. That suggests serious investors are comfortable paying it.
What happens next depends on one thing: whether revenue really goes from ₹158 crore to ₹1,600 crore. If it does, today's price may look cheap. If it doesn't, it won't.
For now, keep an eye on 20 November 2026.
Sources: Infobay AI board resolution dated 15 Oct 2026; Notice of 1st EGM for FY 2026–27 dated 29 Oct 2026 (including the Registered Valuer's report dated 20 Aug 2026); company share count as of 23 Oct 2026.
Disclaimer: This article is for information only and is not investment advice. Unlisted shares carry higher risk and lower liquidity than listed shares. Please do your own research or consult a SEBI-registered advisor before investing.