FatPipe (FATN) Registration Filing summary

Company overview and business model

• Develops enterprise-class, application-aware, secure SD-WAN, SASE, and NMS software solutions, primarily offered as subscriptions for organizations globally.

• Holds 13 patents covering SD-WAN and related technologies, with a focus on reliability, security, and network optimization.

• Solutions are distributed through a network of over 100 partners, including distributors, value-added resellers, and ISPs, with a strong presence in the US and India.

• Core customer base is mid-market companies, with deployments across diverse sectors and geographies.

• Revenue is generated from software, services, and consulting, with contracts typically ranging from 36–60 months.

Financial performance and metrics

• Fiscal year ended March 31, 2024: net revenue $17.86M (up 13% YoY), gross profit $16.79M (up 14% YoY), net income attributable to stockholders $4.37M.

• Six months ended September 30, 2024: net revenue $9.35M (up 10% YoY), gross profit $8.83M, net income attributable to stockholders $2.24M.

• Gross margin improved to 94% in FY24 from 93% in FY23; operating expenses remained stable.

• Adjusted EBITDA for FY24 was $6.34M, up from $3.82M in FY23.

• Cash and cash equivalents as of September 30, 2024: $845,850; total assets: $25.24M; total liabilities: $8.94M.

Use of proceeds and capital allocation

• Net proceeds from the IPO (estimated $4.2M, or $4.9M if over-allotment is exercised) will be used for sales and marketing, customer support, R&D, and general working capital.

• Majority of operating expenses are allocated to sales, marketing, and R&D.

• No current plans to pay dividends; earnings will be retained for business growth.