ARAPL RaaS Secures ₹48 Crore Funding Term Sheet

ARAPL RaaS Private Limited has signed a term sheet to raise up to ₹48 crore through an equity investment from Sai Green Projects Private Limited. This funding aims to strengthen the subsidiary's financial position and support its growth plans.

Deal Details

Affordable Robotic & Automation Ltd (ARAPL) announced on April 09, 2026, that its subsidiary, ARAPL RaaS Private Limited, signed the Term Sheet with Sai Green Projects Private Limited. The agreement details a proposed equity share subscription to raise ₹48 crore.

The funds are intended to enhance ARAPL RaaS's capital base, providing financial backing for future expansion and development.

The transaction is contingent on Sai Green Projects completing satisfactory due diligence, obtaining necessary board and shareholder approvals from both companies, and the signing of definitive agreements.

Why This Matters

This potential fundraise could enable ARAPL RaaS to expand significantly.

It signals investor confidence in the subsidiary's business model, which focuses on AI and SaaS-enabled robotic solutions for warehouse automation.

If successful, the deal will equip ARAPL RaaS with resources to scale operations, develop new technologies, and increase its market share in the growing automation sector.

Background

ARAPL RaaS operates in the warehouse automation sector and has previously sought capital to fuel its growth. It secured USD 700,000 in seed funding in December 2021. More recently, in March 2024, parent company ARAPL infused ₹38 crore into its subsidiary as part of a rights issue, aimed at accelerating revenue generation, particularly in the USA.

Affordable Robotic & Automation Ltd. acquired ARAPL RaaS on March 26, 2024. ARAPL itself is a listed entity providing turnkey automation solutions and industrial robotics.

Potential Impact

• ARAPL RaaS will gain a stronger capital base to pursue growth opportunities.
• The subsidiary can accelerate investments in technology and market expansion.
• ARAPL shareholders may see value creation if the subsidiary's growth accelerates.

Deal Conditions and Risks

• Due Diligence: Sai Green Projects must complete satisfactory due diligence.
• Approvals: Board and shareholder approvals are required from both ARAPL and ARAPL RaaS.
• Definitive Agreements: The final investment hinges on the successful negotiation and signing of binding agreements.

Industry Context

ARAPL RaaS operates in the competitive warehouse automation and robotics solutions sector.

Key players in the broader Indian robotics and automation sector include Honeywell Automation India, Siemens, Tata Elxsi, and ABB Robotics India. These companies are involved in industrial automation, control systems, AI, and manufacturing robotics, highlighting the technologically advanced and growing nature of the industry ARAPL RaaS is part of. ABB Robotics India, for example, is known for its widespread use in manufacturing automation.

Subsidiary Snapshot

• As of March 31, 2025, ARAPL RaaS reported annual revenue of ₹2.86 crore.
• Founded in 2021, ARAPL RaaS was previously unfunded until this proposed raise.

Next Steps to Watch

• Completion of due diligence by Sai Green Projects.
• Outcome of board and shareholder meetings to approve the transaction.
• Execution of definitive agreements for the ₹48 crore fundraise.
• ARAPL RaaS's subsequent utilisation of funds for its growth plans.