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The Indian startup ecosystem’s momentum in lining up one initial public offering (IPO) after another was broken by Paytm’s tepid response on the stock markets that gave other companies pause — with online payment and lending firm MobiKwik delaying its IPO.
However, private market investors don’t seem to be too concerned about the course correction as they believe this will lead to a ‘flight to quality’. Private equity and pre-IPO funds believe that Paytm’s performance on the public markets will lead to the tempering of valuations, with startups like Mensa Brands and Apna being valued at $1 billion in six months and less than two years respectively.
“Given that our pre-IPO fund life is of five years, if we feel the valuations in the private market are too high, we will slow down the pace of investments but we will continue to evaluate companies,” Anshu Kapoor, President and Head of Investment Management at Edelweiss Wealth Management, told YourStory.
“Fintech as a sector includes online brokers, insuretech, digital lenders, payment gateways, neobanks, and others. We are waiting for the right set of winners to emerge. There is very little differentiation and some consolidation will happen in the space,” said Siddharth Mehta, Founder and CIO at public markets fund Bay Capital Partners.
However, there’s light at the end of the tunnel. For the third consecutive day, Paytm’s shares continued to strengthen, with the stock opening at Rs 1,766.7 apiece. Existing investors — BlackRock Inc and Canada Pension Plan Board — also increased their shareholding in the company.
The Interview
This love-bound duo has been delivering grade-A inspiring and motivating content since day one. Watch this episode of #InfluencersInc by YourStory to watch Abhiraj and Niyati narrate the story of their content creation journey that was filled with thrilling and challenging experiences!
Editor’s Pick: KDM India
Nilesh Mali was 18 years old when he came to Mumbai from Jalore, a district in Rajasthan. After working odd jobs for years, first as a salesperson and then as a wholesaler, he began a manufacturing company that made affordable mobile accessories.
Today, the 2011-founded KDM India has an annual turnover of Rs 30 crore. Read More.
Startup Spotlight
Building a healthcare tech giant
Founded in 2017, Suki.AI aims to be a one-stop platform for clinicians. Its founder, Puneet Soni — former product manager from Google, and ex-CPO at Flipkart — has built several successful products to scale. With Suki.AI, Punit hopes to reduce doctors’ burnout by streamlining time-consuming processes. Read More.
News & Updates
- Used car marketplace Spinny has raised Rs 1,849.45 crore from returning and new investors as part of its Series E round. It is now the 39th unicorn.
- Furniture rental firm Rentomojo has raised Rs 145 crore in debt and equity. Of the total, Rs 130 crore is in debt while the remaining was raised from existing investors, including Accel Partners and Bain Capital.
Before you go, stay inspired with…
“If this country’s economy is $2.5 trillion today, in the next 5-10 years, you will see another $2.5 trillion.”
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