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#38 IPO: A reality for Indian tech startups

The Global Tech IPO market

The year gone by had been a muted year for tech IPOs globally, especially the US, primarily due to the market volatility, geo-political instabilities and higher interest rates. An estimated ~150 tech companies that had planned / filed for IPO in 2023 have deferred their plans.

Since then, the Nasdaq has recovered ~35% from its bottom, the US treasury rates have peaked at 5.5% (with a target of ~3-3.5% by end of 2024) and the geo-political crisis have been temporarily mitigated. With visible stability, controlled inflation and re-adjusted investor risk, the global equity market is poised to see a flurry of IPOs in 2024. As per a recent CB Insights report, there are nearly 250 VC funded companies preparing to IPO in the next 12 months. Of these ~30 companies are expected to IPO on Indian bourses, led by some marquee names like Ola Electric, Swiggy, etc.

Below is the list of VC-funded companies expected to IPO in 2024:

 

Indian IPO Outlook

There were ~50 mainboard IPOs and ~165 SME IPOs in India that cumulatively raised Rs 50,000+ Cr. Over 90% of these IPOs were successful, ie, fully subscribed and listed with positive gains. It was a record year for the Indian IPO market and we expect the trend to continue in 2024.

Infact, as per industry estimates, there is roughly Rs 20,000 Cr worth of IPO pipeline already visible, of which ~Rs 4,000 Cr worth of IPOs have already been announced. We estimate this year’s IPO market will be led by technology companies (many of which held back their IPOs in 2022/23) with an estimated of ~50+ tech IPOs including marquee SME companies with a total  IPO size in the range of ~Rs 20000-25000 Cr !

Below is a list of ~30 companies as per CB Insights, that are looking to IPO in India: 

In addition to these 30 companies, we are excited for some of the most promising enterprise tech companies that may look to IPO over the coming years, we are excited to look-out for the below: 

This will be a defining year for tech IPOs in India, further paving the way for early growth investors to exit via public markets and inducing confidence in the depth of Indian markets.

We have built a proprietary framework for investing in Pre-IPO stage companies using a balanced mix of financial stability, growth potential and meeting market expectations (at IPO)

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