Carmel startup Syra Health files to go public

Syra Health Corp., a two-year-old Carmel startup that provides professional services in the health care and life science industries, is planning to go public.

The company filed registration papers with the U.S. Securities and Exchange Commission on May 3 under a structure that would keep most voting control in the hands of company insiders.

Syra said it expects the offering to raise up to $8 million, which it plans to use for marketing and sales, application development, research and development, working capital and other general corporate purposes. The shares would be listed on the Nasdaq exchange under the symbol SYRA.

It intends to sell 2 million units, with each unit consisting of a share of Class A common stock and one warrant to purchase an additional share of Class A common stock at an exercise price equal to $6.50 a share.

In its registration papers, Syra describes itself as a health care services company “promoting preventative health, holistic wellness, health education, and equitable healthcare.”

It supports health and life science organizations by providing medical communications, public health analysis, patient education solutions and value-based care programs.

“We leverage deep scientific and health care expertise to create strategic frameworks and develop patient-centric solutions for the betterment of patient lives and … developing a healthier population,” the filing said.

As of April 15, it had 64 full-time employees and 26 part-time employees.

In 2021, when it had 25 employees, it announced plans to add 126 new jobs by the end of 2025. The Indiana Economic Development Corp. said it would provide Syra Health with $2.1 million in tax credits if the company meets its job creation commitments.

The company leases headquarters space at 1119 Keystone Way.

Under a dual-stock owner plan, shares of Class A common stock will get one vote per share, but each share of Class B common stock will get 16.5 votes per share. As of April 15, there were 1 million shares of Class B common stock outstanding, representing 79.39% of the total voting securities outstanding.

The class B shares are largely held by CEO Deepika Vuppalanchi; Sandeep Allam, chairman and president; and Priya Prasad, chief financial officer and chief operating officer.

“The concentrated voting power of these stockholders could have the effect of delaying or preventing an acquisition of the company or another significant corporate transaction,” the filing said.

The company, which was founded Nov. 20, 2020, said the Indiana Family and Social Services Administration accounted for approximately 98% of its revenues in 2021 and 2022, and 92% of accounts receivable in 2021 and 2022. It provides services primarily to the NeuroDiagnostic Institute and Division of Mental Health and Addiction of the IFSSA.

Last year, Syra Health posted net revenue of $5.26 million and net loss of $2.09 million.

Syra’s IPO comes on the heels of another initial public offering from an Indiana-based health care firm. In February, Versailles-based Neuraxis Inc., which develops electrical-nerve stimulation therapies for children, said it hoped to raise $13.3 million from its IPO proceeds.