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INDIAN STOCK MARKET ENTERING A NEW ERA WITH START-UPS LISTING IN DOMESTIC MARKET Textile Value Chain Editorial Team When coupled with the potential to list in India, the start-up a successful IPO. With the exception of a few notable examecosystem, can pave the way for significant wealth genera- ples such as Indiamart and MakeMyTrip, most start-ups in tion as well as employment opportunities. It’s also offered India have failed to go public. modern investors additional choices, as they seem to be less Zomato, Flipkart, Nykaa, Delhivery and Policybazaar are eager in dividends and far keener in equities that feed their among the Indian startneed for rapidly accumulating Key Points ups preparing to be listed wealth. • Twenty-two start-ups have already achieved unicorn status in domestic market. Ola, The amount of people start- in 2021. BigBasket, Pepperfry, ing businesses has always Oyo, and Byjus’s are also been an indicator of a thriving • Zomato, Flipkart, Nykaa, Delhivery and Policybazaar are among the companies economy, and India is seeing among the Indian start-ups preparing to be listed in domestic looking at the market. a same rise with the advent market. This will allow these of new, innovative enterprises • According to market players, the effective IPO will motivate businesses to increase internet - based. These are venture fund and private equity firms to invest in additional additional capital, offer also indicators of the huge op- domestic start-ups companies. investors with a piece portunities for drawing multiof potential tech giants, fold funding which will result in increased jobs, lifestyles, give an easier exit path for venture capital funds that are and efficiency, in addition to size, even to existing conven- invested in companies here, and create more venture capital tional enterprises. investment for start-ups via the revenues they make. As Covid-19 increased the need for rapid online deliveries of vital supplies, food and groceries, garments start-ups garnered significant investment in 2020. According to a study, India’s online start-ups leaders, which run businesses relating to e-commerce to food delivery and online insurance, are on the verge of going public, with a total amount of $180 billion by 2025. According to Ajay Tyagi, chairman of the Securities and Exchange Board of India (SEBI), latest filings and public issues show the Indian markets’ maturity in adopting the business models of innovative tech firms, which cannot be valued using traditional profitability metrics. He added, the success tales of such modern digital businesses’ initial public offerings would only draw additional capital in the domestic market that helps to develop a new ecosystem of investors and entrepreneurs. Twenty-two start-ups have already achieved unicorn status in 2021. It is the ideal time for an Indian start-up company to obtain funds from the general public via initial public offerings (IPOs). The main objective of any start-up is to secure an Initial Public Offering (IPO). The floodgates for more cash and development in the start-up industry are opened by
A report said, “Although Amazon and Flipkart hold more than 80% of the market, the competitive environment is continually changing.” “For instance, Reliance Jio, including multiple vertical e-commerce companies and numerous brands which are already delivering straight to customers, is expected to appear as a substantial competitive challenge,” it added. “We think e-commerce logistics companies like Delhivery are a good investment.” According to market players, the effective IPO will motivate venture fund and private equity firms to invest in additional domestic start-ups companies. It will also encourage other unicorns, or unlisted companies valued over $1 billion, to avoid the urge to list in the United States and make their international debut. Businesses generated roughly Rs 4,600 crore via initial capital sales in FY21, over nearly twice the money raised in FY20 of Rs 2,140 crore, demonstrating the maturity of India’s IPO market, according to Tyagi. At the end of June in FY22, businesses had raised Rs 1,200 crore via IPOs. Let’s explore who the major unicorn players are looking to list in the domestic market –
OCTOBER 2021
