After a rocky start on the bourses, new-age tech stocks are recovering now. Their revival offers valuable lessons for those preparing to enter a vastly changed market
On November 7, 2023, Honasa Consumer, the parent of beauty and wellness brand Mamaearth, made its debut in the public market, exactly two years after beauty and personal care brand Nykaa’s arrival. Despite the discordant notes in the market, Mamaearth’s initial public offering (IPO) garnered a subscription rate of 7.61 times.
Zomato, the first Indian unicorn to go public (in July 2021), marked its second consecutive profitable quarter in September. Profits surged to Rs 36 Crore in Q2FY24 from Rs 2 crore in Q1FY24, a significant turn - around from the Rs 251-crore loss in Q2FY23. Its quick commerce arm Blinkit turned contribution positive for the first time in Q2, with an average order value of 2x of Zomato in certain cities. Zomato expects Blinkit to break even in Q1FY25
Meanwhile, Paytm clocked a robust 32 per cent YoY revenue growth in Q2 to Rs 2,519 crore; the festive season revenue is expected to be captured in Q3, and not in Q2 as in the previous fiscal
As investors face mounting exit and liquidity demands, late-stage companies are swiftly shedding their ‘start-up tag’ and are aggressively benchmarking themselves to their listed peers like Swiggy to Zomato, MobiKwik to Paytm, Droom to CarTrade, or Ecom Express to Delhivery.
Swiggy, Lenskart, Firstcry, OfBusiness, Ixigo, Oyo, Droom, Mobikwik, Pharmeasy, Ecom Express, Navi Technologies, Snapdeal, Capillary Technologies, Ola Electric, Pine Labs and Flipkart.
Investors, too, are showing renewed enthusiasm for start-up IPOs in 2023, as evidenced by the substantial subscription rates for new-age technology listings such as ideaForge (106x), Yatra (1.6x), Yudiz (4.75x), and Zaggle (12x).
All listed start-ups are seeing revenue growth, with Policybazaar and Zomato standing out for the most substantial increase in total income. Nykaa is the only listed start-up with a full-year profit, while Zomato has seen two consecutive quarters of profit now
*From October 1, 2022, To September 30, 2023; Total income, PAT And ROE for FY23; Figures In Brackets Are Percentage Change Y-o-Y; Results Are On A Consolidated Basis Source Ace Equity
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