Global edtech company XED sets the syllabus for GIFT City listings

XED, a global education technology (edtech) firm focused on executive programmes with leading universities, is preparing to raise $12 million through an initial public offering (IPO) at the International Financial Services Centre (IFSC) in Gujarat International Finance Tec-City (GIFT City).

 

This will be the first IPO at the IFSC and could serve as a template for other companies considering the tax-friendly jurisdiction.

 

XED Founder and Chief Executive Officer John Kallelil said GIFT City was chosen for its strategic value, given the firm’s presence in India, the United Arab Emirates, Saudi Arabia, Singapore, and the US.

 

Kallelil emphasised that liquidity and ease of capital access offered by GIFT City are crucial for a company with global operations.

 

“The GIFT City route allows investment and exit more smoothly than Indian exchanges, particularly for cross-border capital movement, where withholding tax and regulatory roadblocks usually arise,” he said.

 

The IPO will combine fresh equity with an offer for sale worth $2.4 million, allowing early investors to partially exit.

 

XED had previously diluted only 8 per cent of its equity in 2022, with backers including Cred founder and venture capitalist Kunal Shah.

 

The firm has consciously avoided the conventional venture capital route, citing market volatility and the growth-at-any-cost mindset prevalent in the edtech sector, Kallelil said.

 

Feedback from institutional investors worldwide has been “excellent”, he added. “The firm resonates well with investors who see value in our niche positioning in executive education and the visibility we offer into business operations.”

 

Kallelil noted that a GIFT City listing brings distinct benefits over Indian exchanges, including “a straightforward process, a responsive regulatory framework, and infrastructure tailored to global business models”.

 

Some restrictions remain, particularly a bar on resident Indian investors buying or selling XED shares for now, as GIFT City is treated as an offshore jurisdiction.

 

Currently, participation is limited mainly to foreign funds, overseas retail investors, non-resident Indians (NRIs), and domestic mutual funds with GIFT City units.

 

While the firm expects more participation from institutional investors, it has allocated 15–20 per cent of the IPO for retail investors, including NRIs and foreign investors. The IPO is expected to open for subscription in the first week of October.

 

Kallelil said liquidity is not a concern, given solid institutional backing.

 

He also pointed out that under IFSC rules, raising the full $12 million subscription is preferable but not mandatory, unlike domestic IPOs.

 

Experts say that while modest in scale, XED’s IPO is being closely watched, as it could encourage more international firms to list in GIFT City and help develop the ecosystem.

 

The $12 million raise could…

 

*  Test GIFT-IFSC infrastructure for listing

*  Set lesson one in global capital access

*  Turn offshore hub into a cross-border IPO classroom