After the success of Burger King & Mrs. Bectors, many startups plan to come up with IPO. It will help their early investors to get exit. We evaluate 7 startups that plan to target the capital markets in 2021.
Paytm is one of the leading companies in the Indian mobile payments market as it now has more than 150 million active users and 16 million merchants registered with the company. It plans to come up with an IPO in 2021. The company has changed its discounting strategy and does not plan to start a price war with Flipkart and Amazon as it may result in massive cash burn. Instead, the company plans to focus on leveraging its 400 million userbase to grow the business.
Even though Flipkart is now owned by Walmart, but it may still hit the capital market in 2021. The retail giant got a valuation of around $25 bn in its last round of funding. It is widely expected that the company would tap the US markets and become the first Indian origin company to be traded on the US exchange. It has recently rejig its board and included CEO Kalyan Krishnamurthy. The other newly inducted board members include HDFC CEO Keki Mistry, Suresh Kumar (Walmart’s global CTO) and Leigh Hopkins (Walmart’s EVP).
Nazara Technologies has once again filed the Draft Red Herring Prospectus (DHRP) with SEBI. This is the second time that Nazara is trying to list on public markets. It had earlier filed the DRHP in 2018 but didn’t proceed ahead. Nazara Technologies has become a leading Indian gaming and sports media company and is backed by Rakesh Jhunjhunwala, one of India’s biggest investors in the stock market. It owns mobile gaming rights of cartoon characters like Chhota Bheem, Motu Patlu and Shikari Shambhu. During the last two years, it has made 7 acquisitions and raised more than Rs. 500 crores.
After achieving profitability targets (required to go public in India), online cab aggregator Ola cabs plans to come up with an IPO this year. The ride hailing giant plans to list in India, unlike few other startups. Its CEO, Bhavish Agarwal recently mentioned “Our focus has been to build a business which is, not building for vanity, but for building strong fundamental propositions for the consumer and in a profitable business model,”
Ola cabs is also backed by Tiger Global and Tencent and reported over 1 billion rides taken per year. According to few estimates, it owns 55% market share in the Indian cab hailing market. The company has raised more than $3.3 billion and plans to come with an IPO in 2021.
Zomato, India’s leading food ordering company is planning to come up with a IPO within the first half of year 2021. However, if reported losses of Rs. 2451 cr in FY20 up from Rs. 940 cr in FY19. The main reason was 37% increase in expenses from Rs. 3383 cr to Rs. 4627 cr. On the other hand, the revenues grew up to Rs 2,485 cr in FY20 from Rs 1,255 cr in FY19. Zomato is backed by Alibaba’s Ant Financial, Tiger Global and Infoedge.
The online Food delivery leader, Zomato has still not declared whether it will come up with an IPO on Indian bourses or tap the overseas markets. It has also engaged Kotak Mahindra Capital as its merchant banker for its IPO. It raised around $146mn during the last round, valuing the company at around $3.5 bn.
PolicyBazaar is India’s first online insurance aggregator. It helps customers compare and choose life, health, auto, and property policies. It was started by Yashish Dahiya, Aloke Bansal and Avaneesh Nirjar in 2008. Yashish Dahiya is the CEO of the the company. PolicyBazaar has raised funds from Softbank, Temasek Holdings, Tencent, and Tiger Global. The company plans to raise $500mn through IPO around September 2021.
Online education company BYJUs was in news recently for acquisition of Whitehat Junior. It is funded by Lightspeed and Sequoia and is valued at $11 bn. The company has grown multi fold due to the lockdown and closure of schools. The engagement on its website has increased by 300%. Reliance is also planning to get into Ed-tech space, which means BYJUs may get tough competition, but it still plans to come up with a IPO and broaden its investor base.