Startups are making a beeline for Dalal Street this year, with most still running losses which are the ones worth betting on. editorji explores the big startups set to shake up the street.
Set to deliver a hot IPO: Zomato
First up, Zomato, this food delivery platform will be the first meaningful Internet listing in India. Backed by Sequoia and Infoedge this foodtech giant is looking to raise Rs 8,250 crore, or over $1.1 billion, through its initial public offering (IPO) makes this one of the largest by a consumer internet. The proposed offer will comprise Rs 7,500 crore worth of fresh issue and Rs 750 crore worth of share sale by Info Edge. The company, which was last valued at $5.4 billion in February 2021 is hoping brokerages bet big on it as the food delivery market which is now just a 2 player market is slated to be $11 billion opportunity in 5 years as per CLSA. The numbers however are not encouraging. Zomato continues to bleed revenues, reporting Rs 683 cr in a net loss against Rs1300 cr in revenues for the nine months ending December 2020.
Adding the glam factor: Nykaa
Putting on a pretty face for Dalal Street is beauty retailer Nykaa, this 9 year old e-commerce platform is looking to debut on the stock market with a $500-700 million IPO. Founded by former investment banker Falguni Nayar, Nykaa doubled it’s valuation this year in it’s last funding and is looking to double that to $4.5 billion valuation through it’s listing. Nykaa is exciting brokerage as unlike many other startups is not burning cash , infact it is already profitable. It is today the largest multi-brand beauty & personal care (BPC) platform in India commanding nearly a third of the online BPC space. With over 15 million registered users and over 1.5 million orders a month Nykaa is also expanding into fashion facing off the competition with Myntra and Ajio. Nykaa ended FY20 with revenues at Rs1800 cr and the company turned profitable in FY19.
In gear for an IPO: Delhivery
Backed by SoftBank, Tiger Global land Carlyle logistics startup Delhivery is planning to list as well within this financial year. The Gurugram-based company was founded in 2011 and is currently valued at $3 billion dollars. The company is looking to raise $500 million via the IPO as per Sahil Barua, co-founder and chief executive officer of Delhivery. The startup boasts of revenues of over Rs 3700 cr making it the largest supply-chain company in the country by revenue.
The Diwali Dhamaka: PayTm IPO
Last and the opposite of least, India’s most valuable startup PayTm is reportedly getting into gear for a mega IPO, one that would be India’s largest IPO to date. Reports indicate the online merchant payment gateway is looking at a whopping $30 billion valuation. The company in it’s last round of funding was valued at $16 billion. In the unlisted market space, PayTm shares soared to as high as Rs 27,500/share ahead of the IPO. Market sources confirmed that PayTm has announced a 1:10 bonus to get the ticket size of these shares lowered to attract retail investors at the time of the IPO. Alibaba and SoftBank-backed PayTm is aiming for a Diwali listing 5 years after it’s big boost from demonetisation.