Techpreneurs Taste Public Listing

Newly-listed start-ups do well in stock markets but will have to turn profits to justify their multi-billion dollar valuations.

- ASMITA DEY

STONE AGE. BRONZE AGE. Iron age. We define epochs of humanity by the technology they use." These words by Netflix co-founder & co-CEO, Reed Hastings, define the current state of the world as it sits on the cusp of a technological revolution. India, too, is seeing the start of what Prime Minister Narendra Modi has described as 'techade,' marked by new ideas birthing new entrepreneurs, also called 'techpreneurs. The new breed of businesses, helped by ultra-low data pricing and deluge of affordable smartphones, are building billion-dollar valuation companies. Some are even going public-2021 and 2022 examples include unicorns Nykaa, Zomato, PB Fintech, Delhivery, and Paytm, reflecting stock market's growing acceptance of start-ups. Deepinder Goyal-helmed Zomato led the way by listing at over 50% premium. Beauty retailer Nykaa got listed at 80% premium to its issue price, which MD & CEO Falguni Nayar described as a reflection of investors' desire to "own the stock long-term." Although Paytm public issue destroyed over *35,000 crore investor wealth and Delhivery made a muted debut earlier this year, mostly due to tepid market conditions, there is no doubt that Indian start-ups have come of age. "India is in the middle of a technology revolution as consumers and small businesses adopt technology at a rapid pace. I believe India will become an exemplar, especially in payments and financial services," says Paytm founder & CEO Vijay Shekhar Sharma. No wonder four new-age tech companies that have debuted on this year's Fortune 500 India list have reported a steep 183.80% increase in total income.

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