Indian startups keen to tap IPOs in 2022

Indian startups keen to tap IPOs in 2022
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Indian startups keen to tap IPOs in 2022

Highlights

  • In 2021, a record breaking 40 Indian startups turned unicorns
  • Average time taken by an Indian startup to go public is 13.8 yrs
  • Zomato has the highest marketcap among listed Indian startups

New Delhi: In 2021, the Indian startup ecosystem went past three remarkable milestones — the overall funding crossed the $100 billion mark, a record-breaking 40 startups turned unicorns and 11 Indian startups listed on stock market.

Nine of these startups have already made their secondary market debut and are listed for trading on Indian and international stock markets. And six among these have listed at a premium, indicating the growing acceptance of IPOs as an exit opportunity for investors and also as an aspiration for startup founders and entrepreneurs.

The nine startups that listed on the stock exchanges in 2021 have a cumulative market cap of over $56 billion with over two dozen startups expected to go for IPO in 2022. But the streak of IPOs in 2021 and the confidence in public listings do not adequately convey the financial performance of the startups.

Sustainable profitability is still a major sore point for retail and institutional investors eyeing Indian tech stocks.

The latest release from Inc42 Plus — Indian Startup IPOs & Earnings Reports, Q3 2021 — will look deeper into this dichotomy between the IPOs and the financial performance covering both stock performance as well as the quarterly financial performance of new-age listed Indian startups, metrics such as return on ad spend (ROAS), price-to-sales ratio, volatility of stocks compared to the benchmark index as well as the strengths and challenges of each listed company.

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