FatPipe (FATN) Registration Filing summary

Company overview and business model

• Develops enterprise-class, application-aware, secure SD-WAN, SASE, and NMS software solutions, primarily sold via subscription contracts of 36–60 months.

• Serves enterprises, service providers, government, and mid-market customers globally, with major markets in the US and India.

• Core technology is internally developed, supported by 13 patents, and distributed through a network of over 100 partners.

• Revenue is generated through software, services, and consulting, with a focus on managed service contracts and channel sales.

Financial performance and metrics

• Fiscal year ended March 31, 2024: net revenue $17.86M, gross profit $16.79M, net income $4.28M, gross margin 94%.

• Six months ended September 30, 2024: net revenue $9.35M, gross profit $8.83M, net income $2.24M, gross margin 95%.

• Revenue grew 13% year-over-year in FY2024, with product and service revenue up 21.1%.

• Adjusted EBITDA for FY2024 was $6.34M, up from $3.82M in FY2023.

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

• Two largest reselling partners accounted for 49.5% of FY2024 revenue.

Use of proceeds and capital allocation

• Net proceeds will be used for sales and marketing, customer support, ongoing corporate purchases, R&D, and general working capital.

• Proceeds may be allocated at management’s discretion based on evolving business needs.