In retrospect, 2021 would always be remembered as a landmark year for the Indian startup ecosystem and the whole craze of these new-age businesses to shun their private labels and go public. Not just from the perspective of the startups, even for the public markets and the crores of retail investors, 2021 opened up a whole new avenue for investments.
From the concerns of loss-making tech startups going public to recognition of the unconventional growth based valuation of businesses, the Indian public markets have come a long way.
In September, SEBI Chairman Ajay Tyagi too had said that the recent IPO filings of new-age tech companies showed that the Indian market is “maturing”.
The bumper listing of Zomato in July stood as the watershed moment for the Indian stock markets and the startup ecosystem.
SaaS major Freshworks also left a mark in the history of Indian startups when the homegrown customer engagement unicorn witnessed a stellar stock market debut on the NASDAQ in the US.
Overall, 9 startups have gone public so far in 2021 raising funds to the tune of $5.86 Bn (At INR 75.76/$). They include INR 43,678 Cr ($5.76 Bn) in the domestic market and $100 Mn by Freshworks in its US IPO. RateGain and MapmyIndia are likely to get listed in the next couple of weeks. RateGain aims to raise INR 1,336 Cr ($176 Mn), whiie MapmyIndia is targeting to raise INR 1,040 Cr ($137.28 Mn)
If 2021 was a pioneering year in terms of startup IPOs, 2022 will be the year when this new phenomenon of startups going public reaches a new heights with a whole lot of unicorns and other online businesses lined up for the same.
Here is a look at the companies which are expected to list on the stock markets going ahead.
Indian Logistics Unicorn Delhivery
The Gurugram-based logistics unicorn filed its draft red herring prospectus (DRHP) in November. It aims to raise INR 7,460 Cr. The offer would include a fresh issue of shares worth up to INR 5,000 Cr and an offer for sale (OFS) of up to INR 2,460 Cr.
As per its DRHP, Masayoshi Son’s SoftBank will be offloading shares worth INR 750 Cr, whereas Carlyle Group is likely to sell shares worth INR 920 Cr. Times Internet will be selling shares worth INR 330 Cr.
Three cofounders — Kapil Bharati, Mohit Tandon, and Suraj Saharan will be offloading shares worth INR 14 Cr, INR 40 Cr, and INR 6 Cr, respectively. However, cofounder and CEO, Sahil Barua will not offload his shares in the proposed IPO.
According to the SEBI website, the application is under process. The IPO is expected to hit the market in the first quarter of 2022 at the valuation of $4.5 Bn – $5 Bn
Travel Tech Giant Ixigo
Online travel ticket aggregator Le Travenues Technology, which operates travel platform ixigo filed its DRHP with SEBI to raise INR 1,600 Cr through an IPO (in August).
The IPO will consist of a primary component which will include an issue of fresh shares worth INR 750 Cr and an offer-for-sale, meaning allowing existing investors to offload their shares, amounting to INR 850 Cr. The issue is expected to give an exit opportunity to early investors like Elevation Capital (earlier called SAIF Partners) and Indian smartphone manufacturer Micromax.
According to its DRHP, ixigo will utilise at least 40% of its net proceeds for funding organic and inorganic growth initiatives. The platform defines organic growth initiatives as discounts and other promotional incentives to attract new customers to its OTA platforms.
Gurugram based travel platform is yet to receive the regulator’s nod for its IPO. The offer is likely to open in the first quarter of next year.
Hospitality Unicorn OYO
On October 1, Oravel Stays, the parent company of hospitality unicorn OYO filed for an INR 8,430 Cr (IPO) that will include fresh shares worth INR 7,000 Cr and an offer for sale through which many existing investors are expected to offload their shares, amounting to INR 1,430 Cr.
Founded in 2013 by Ritesh Agarwal, the hospitality giant counts Masayoshi Son’s SoftBank, NASDAQ-listed Airbnb, Lightspeed Venture Partners, Innoven Capital as investors.
Long-time investor and the largest shareholder in the hospitality unicorn OYO, SoftBank will offload part of its stake in its proposed initial public offering (IPO).
SoftBank’s SVF India Holdings (Cayman) Ltd holds 46.62% shares in Oravel Stays, the parent company of hospitality unicorn. The OYO’s DRHP shows that SVF India Holdings will offload shares of up to INR 1,328.5 Cr through the offer for sale.
The other existing investors who will dilute their stake include A1 Holdings Inc, China Lodging Holdings (HK) and Global Ivy Ventures LLP.
Automobile Marketplace Droom
Last month, online car marketplace Droom filed its draft prospectus to raise INR 3,000 Cr through IPO. The IPO offer includes a fresh issue of shares worth up to INR 2,000 Cr and an offer for sale worth INR 1,000 Cr.
The startup intends to utilise around INR 1,150 Cr for organic growth initiatives and around INR 400 Cr through funding inorganic growth initiatives. The company further highlighted that it will not utilise more than 25% of gross proceeds from the fresh issue for general corporate purposes.
The startup intends to utilise around INR 1,150 Cr for organic growth initiatives and around INR 400 Cr for funding inorganic growth initiatives. The company further highlighted that it will not utilise more than 25% of gross proceeds from the fresh issue for general corporate purposes. In July this year, the startup entered the unicorn club after closing the first leg of its IPO growth funding round of $200 Mn.
It has not yet received SEBI’s approval and is expected to receive the nod and go public during January-March 2022.
Fintech Unicorn MobiKwik
The IPO of One MobiKwik Systems, the parent company of Delhi NCR-based MobiKwik has been one of the most awaited startup IPOs. However, its public offer has been delayed even after receiving the SEBI Nod on October 7. The IPO was initially expected to open around Diwali this year.
According to market analysts, the proposed public offer is likely to have fallen prey to the anxiety among investors after Paytm’s listing. On November 15, The Morning Context reported that two institutional investors, Eastspring Investments and Nomura, who had committed to invest in the startup’s IPO, have pulled back.
Citing people in the know of the developments, it reported that along with high valuations, the investors are also doubtful about the company’s ability to compete in India’s crowded fintech space.
The INR 1,900 Cr IPO comprises a fresh issue of equity shares up to INR 1,500 Cr and an offer for sale for certain existing shareholders up to INR 400 Cr.
As per the DRHP, an offer of sale (OFS) includes INR 9.9 Cr by American Express, INR 68.9 Cr from Bajaj Finance, INR 11 Cr by Cisco Systems, INR 94 Cr by Sequoia, INR 24 Cr by Treeline Asia, INR 111 Cr from founders (promoters) such as Bipin Preet Singh and INR 78 Cr from cofounder Upasana Taku.
The company is now expected to hit the public markets in the first quarter of 2022.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, the Gurugram-based MobiKwik was last valued at $700 Mn after it raised $20 Mn (INR 150 Cr) in June this year from Abu Dhabi Investment Authority (ADIA).
Healthtech Unicorn PharmEasy
API Holdings, the parent company of epharmacy unicorn PharmEasy filed its DRHP in November 2021 with market regulator SEBI aiming to raise up to INR 6,250 Cr through a fresh issue of shares.
According to the DRHP, the healthtech giant’s existing investors will not be selling any shares in the IPO. The company, however, will look at an option of pre-IPO fundraise of up to INR 1,250 Cr through private placement after consulting with the BRLMs (Book running lead manager).
The company intends to utilise around INR 1,929 Cr of the IPO net proceedings for prepayment or repayment of all or portion of certain outstanding borrowings availed by the company and its subsidiaries.
Around INR 1,259 Cr will be utlised by the healthtech unicorn for organic growth initiatives. In contrast, INR 1,500 Cr of the net proceeds will be utilised for inorganic growth through acquisitions and other strategic initiatives.
Founded in 2015 by Dharmil Sheth and Dr Dhaval Shah, PharmEasy merged with its investor entity, Ascent Health, to form API Holdings in 2019. This brought in three new cofounders – Siddharth Shah, Hardik Dedhia, and Harsh Parekh.
The DRHP filed on November 10 is under process with the capital market regulator and is IPO expected to hit the markets during the upcoming first quarter of 2022.
Logistics Giant Ecom Express
Just around the time SoftBank-backed Delhivery filed its DRHP with SEBI proposing to go public, another logistics startup Ecom Express made its intentions clear to list on the domestic stock exchanges.
On November 2, Inc42 exclusively reported that Delhi-based Ecom Express has converted into a public company. The startup passed a resolution on October 22, where the company’s shareholders approved the company’s conversion from Ecom Express Private Limited to Ecom Express Limited.
Ideally, a startup converts itself into a public company when it intends to list itself on the stock exchange.
People aware of company’s plans informed Inc42 that the startup intends to raise funds through IPO at $1.5 Bn to -$1.8 Bn valuation.
Earlier this year, the company had raised $20 Mn from its existing investor CDC Group. It iss backed by Warburg Pincus, Partners Group, Peepul Capital and has raised close to $450 Mn across six rounds.
Founded in 2012 by TA Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena, Ecom Express provides end-to-end logistics solutions. It facilitates first-mile pickup, processing, network optimisation and last-mile delivery.
It has, however, not yet filed its draft prospectus with the capital market regulator and is expected to file its DRHP during the January-March 2022.
Sachin Bansal’s Navi Technologies
Navi Technologies has initiated the process to go public. A Moneycontrol report recently said that the company has brought on board Axis Capital, ICICI Securities, BofA Securities and Credit Suisse as advisors for the IPO and more banks may be added going ahead.
The company is expected to file its DRHP within the ongoing financial year (FY22).
The startup turned profitable for the year ending March 31, 2021. The insurance aggregator startup has posted a profit of INR 71 Cr in FY21, a significant improvement after incurring a loss of INR 8 Cr in FY20.
The three-year-old startup saw its total income rise by 252% from INR 221 Cr in FY20 to INR 780 Cr in FY21. While the Mumbai-based startup drastically reduced its other income from INR 22 Cr in FY20 to INR 9 Cr in FY21, its revenue from operations grew to 779 Cr in FY21 from INR 198 Cr in FY20.
Founded by Bansal and his former Flipkart colleague Ankit Agarwal in 2018, Navi operates in lending, general insurance, mutual funds and microfinance.
In June this year, Navi launched a monthly subscription EMI-based insurance product instead of the usual annual premium that insurance providers demand. It also entered the mutual fund business earlier this year.
Around a week back, Navi Mutual Fund submitted draft documents to the Securities and Exchange Board of India (SEBI) to launch its blockchain index fund of fund (FoF).
Navi is also awaiting approval from the Reserve Bank Of India for a universal banking license.
It is expected to file its DRHP in the first quarter of 2022.
Ecommerce Marketplace Snapdeal
Another online company planning to go public in 2022 is the New Delhi-based ecommerce giant Snapdeal, which recently converted into a public company.
As per a resolution passed by the company (dated December 5, 2021), the ecommerce giant’s shareholders have approved the conversion of the ecommerce marketplace to Snapdeal Limited from Snapdeal Private Limited.
The startup has also proposed to issue fresh equity shares worth up to INR 1,250 Cr for its IPO offer. The offer will also include an additional offer-for-sale portion where some of the startup’s shareholders will sell their shares.
According to an Inc42 source, none of the major shareholders (Temasek, Blackrock) will sell their stakes. SoftBank, which is the largest shareholder in the company, will sell some portion of its shares to bring down its shareholding below 25%, as Snapdeal intends to go public as a professionally managed company.
The eecommerce marketplace is eyeing a $200 Mn – $250 Mn IPO at a $1.5 Bn valuation.
The ecommerce player has also proposed to increase the aggregate limit of investment by NRIs from 10% to 24% of the paid-up equity share capital.
The company is expected to file its DRHP later this month and get listed in early 2022.
Founded by Kunal Bahl and Rohit Bansal in 2010, Snapdeal has received over $1.5 Bn from marquee investors such as SoftBank, Foxconn Technology Group, Chinese conglomerate – Alibaba Group, and Canada’s Ontario Teachers’ Pension Plan.
Data Intelligence Platform Tracxn
Bengaluru based Tracxn Technologies Ltd, the parent company of data intelligence platform Tracxn received the market regulator’s approval for its IPO last month.
The IPO would consist of only an offer for sale (OFS) of 3.86 Cr shares.
As per the DRHP filed in August, Tracxn cofounders Abhishek Goyal and Neha Singh will offload around 76.6 lakh of equity shares each.
The existing shareholders who will offload part of their shares include Elevation Capital, Flipkart founders Binny and Sachin Bansal, Accel India, SCI Investments, Delhivery CEO Sahil Barua and Girish Mathrubootham, the founder and CEO of Nasdaq listed Freshworks.
The company, however, has not announced the dates for its IPO so far and the market expects the offer to open during the first quarter of 2022.
Enterprisetech Giant Capillary Technologies
Bengaluru and Singapore-based Capillary Technologies is also heading for its initial public offering and is planning to get itself listed on Indian stock exchanges.
In October, people aware of the development informed Inc42 that the startup is aiming to list itself on the exchanges by the end of Q2 2022.
Capillary Technologies has also converted into a public company, regulatory filings accessed by Inc42 show.
According to sources, the enterprisetech startup has already roped in Kotak and ICICI Securities to manage its IPO.
Founded in August 2008 by IIT Kharagpur alumni Aneesh Reddy and Krishna Mehra, Capillary Technologies is an omnichannel engagement and commerce solution startup. It claims to have a stronghold in India, Southeast Asia, MENA, and China among other countries.
The startup is backed by Warburg Pincus, Sequoia Capital, Avataar Capital, and Filter Capital.
Mobility Unicorn Ola
As the IPO rush gains steam among tech-backed startups, Ola too is preparing to get listed next year.
In an interview with CNBC in August, Aggarwal had revealed its plan to list soon, wherein he said that the company plans to offer shares of both Ola and Ola Electric on the stock exchanges.
However, Aggarwal highlighted that Ola will be listed first as it is a more mature business compared to Ola Electric which started three years ago. Ola Electric is currently making the headlines as the startup has already delayed its delivery of S1 and S1 pro vehicles twice.
Recently Inc42 exclusively reported that Bhavish Aggarwal-led Ola has raised close to $139 Mn in a fresh round of funding led by Edelweiss along with IIFL. The ride-hailing startup raked up the new funding amount at over $7 Bn valuation.
The mobility unicorn also is looking to raise over $500 Mn in debt through Term Loan B (TLB) deal.
In a note, Moody’s Investor Services said that the company is currently in the midst of completing a pre-IPO funding round to raise equity from new and existing investors, and also targets to complete a public listing by the first half of 2022. However, the execution of its plans is subject to market conditions and as such remains uncertain, it said.
It is currently in talks with bankers for the planned IPO. It plans to go public with a valuation of $12 Bn – $14 Bn.
Edtech Decacorn BYJU’s
Founded in 2012, edtech giant BYJU’s is also looking for a domestic initial public offering in the next 18 months. According to Inc42 sources, the company is eyeing $40 Bn – $45 Bn valuation.
The most valued edtech unicorn in the country increased the size of its ongoing Series F round to INR 2,700 Cr ($363 Mn) at a $21 Bn valuation in November. According to filings accessed by Inc42, Chan Zuckerberg Initiative, and GenGlobal Bright Corp, have joined the ongoing Series F round with INR 504 Cr infusion.
This investment marked the first investment from Google founder’s family office through GenGlobal Bright Corp in the country’s largest edtech startup. Chan Zuckerberg Initiative had first invested in BYJU’s in 2016.
In October, the company had raised INR 2,200 Cr from Oxshott Venture Fund, Edelweiss, Verition Fund, XN Exponent Holdings, and MarketX Ventures.
BYJU’s was last valued at $18 Bn, has been on an active lookout for raising funds and acquisitions to strengthen its dominance in the booming edtech space across the globe. The Byju Raveendran-led learning platform has also started a hybrid pilot project in major Indian cities for its 100 Mn users.
The edtech giant is expected to go public in the second quarter of 2022.
Fintech Giant Pine Labs
In September, point of sale (PoS) and merchant commerce solution provider Pine Labs converted into a public company, a mandatory step required for a startup to do before it files for an IPO. The fintech company’s parent – Pine Labs Pte – which is based in Singapore is now Pine Labs Limited.
The company reportedly is eyeing a public listing in the US. Currently valued at $3 Bn, India digital payment unicorn has been looking to file its paperwork with the US Securities and Exchange Commission (SEC) for its IPO.
Pine Labs, which has hired investment banks Morgan Stanley and Goldman Sachs to manage the proposed IPO, is looking to raise nearly $1 Bn through a mix of primary and secondary stake sales.
Most recently, Pine Labs had raised $100 Mn from US-based investment management company Invesco. In July, it bagged $600 Mn from Fidelity Management & Research Company, BlackRock, Ishana, IIFL at a valuation of $3 Bn.
Backed by marquee investors such as Sequoia Capital, Paypal, Lone Capital and others, Pine Labs entered the unicorn club in 2020, after it closed a deal with US multinational financial services corporation MasterCard.
Founded in 1998 by Lokvir Kapoor, Pine Labs enables large and mid-sized businesses in Asia and the Middle East to accept digital payments. The startup further provides merchant commerce solutions including enterprise automation systems such as customer relationship management and inventory management.
The company is expected to go public by the third quarter of 2022 at a valuation of $6 Bn.
Ecommerce Behemoth Flipkart
The public listing of Walmart-owned Flipkart has been in the offing for some time now. Earlier, the Amazon rival was gunning for a US IPO in Q4, 2021, according to analysts in the know of the developments. However, not much action took place this year.
Speaking at the Morgan Stanley Global Consumer & Retail Conference recently, Brett Biggs, executive vice president and chief financial officer of Walmart said that although Flipkart’s IPO is on the cards, there is no specific timeline.
The ecommerce giant, currently valued at $38 Bn is eyeing a valuation of $50 Bn through the public offer expected in the fourth quarter of 2022.
Of late, Flipkart has diversified its online offerings Flipkart Boost and Shopsy. As the Indian startup ecosystem embraces the D2C model that has led to substantial funding in startups selling directly to the consumer, Flipkart in September launched ‘Flipkart Boost’, an integrated, service-fee based programme for D2C brands.
The company said it will provide end-to-end support covering planning, advertising, cataloguing, logistics, quality control and mentoring to homegrown brands.
Further, in June, the company had forayed into the social commerce space with Shopsy, intending to capture a larger share of shoppers on the internet.
Foodtech Giant Swiggy
Valued at about $10.5 Bn, foodtech giant Swiggy is also readying itself for an IPO. It is expected to get listed in the October-December quarter next year.
Recently, the online food delivery startup has announced to invest $700 Mn in its express grocery delivery platform Instamart.
In July, Swiggy had closed a $1.25 Bn round of funding led by SoftBank Vision Fund 2 and Prosus with a valuation of $5.5 Bn. Founded in 2014, Swiggy has so far raised $3.7 Bn.
In October, it announced plans to hold two ESOP liquidity events worth $35 Mn – $40 Mn at its current valuation in the next two years.