New Delhi : While the stock performances of tech IPOs, compared to other consumer companies, witness a steeper crash, India is poised to see more than 100 large-scale profitable/path-to-profitability startups in the next five years.
With about 20 of them already being listed, about 80 start-ups have the potential to look at an IPO journey, according to a report by Redseer Strategy Consultants with HSBC.
The learning is that there may be more time, maybe a few quarters, for the markets to recover.
“We always see IPOs bouncing back post downturns,” the report added.
In India, with about a $3.9 trillion market capitalisation, only about 1 per cent can be attributed to tech/new age companies.
There are a lot of metrics here that the start-up will need to focus on in their IPO journey, including market leadership, clearly visible TAM, moats/multiple use cases, diversified, consumer love, predictable revenues, high operating leverage, achieved sustainable unit economics and a clear path to profitability.
“We are just getting started with the journey of start-ups coming up and going towards their path to profitability, then looking at that public market journey,” said the report.
Related Posts
WhatsApp’s new filter option will let users get list of their favourites from chats tab
India’s forex reserves dip by $2.83 billion to $640.3 billion
Nifty snaps five-day rally driven by weak global cues