New Delhi: India is likely to see over 100 mature, large, profitable or profitable start-ups in the next five years, 80 of which will go public listings, market research and consulting firms. may go. red seer said Tuesday.
Redseer Strategy ConsultantIn its IPO report, it says 20 of the mature startups have gone public so far.
“India could see more than 100 mature, large and profitable start-ups on their way to becoming/profitable in the next five years. 80 startups may look to the market. IPO journey,” Redseer said in a report.
It also said technology IPOs have fallen sharply relative to consumer goods stocks, largely due to global macro conditions.
The report, produced in partnership with HSBC, notes that technology companies are now prioritizing growth.
“A typical company that is cash flow positive two years from now will have at least a 20-30% discount on its valuation in a low interest rate environment and will appreciate significantly in a high interest rate environment. We are seeing it now.” said it.
The company believes India’s public market capitalization has significant growth potential compared to other countries.
About 25% of the approximately $43 trillion market capitalization in the US can be attributed to technology or new age companies, including giants such as Apple and Amazon.
In India, which has a market capitalization of about $3.9 trillion, only about 1% comes from tech and new age companies, the report said.
“Looking at a similar situation over the past 20-odd years, we can see that even after interest rates start to fall, it will still take some time for the market to recover sustainably. is factored into the price.
Rohan Agarwal, partner at Redseer Strategy Consultants, said, “We’ve learned that it could take a lot more time, perhaps quarters, for the market to recover. We always see IPOs bounce back after the recession. I am,” he said.
According to the report, there are a number of indicators for start-ups to watch on their IPO journey. For example, market leadership, a clearly visible and responsive market overall, multiple use cases, predictable returns, high operational leverage, sustainable unit economics, and a clear path to monetization.
Redseer Strategy ConsultantIn its IPO report, it says 20 of the mature startups have gone public so far.
“India could see more than 100 mature, large and profitable start-ups on their way to becoming/profitable in the next five years. 80 startups may look to the market. IPO journey,” Redseer said in a report.
It also said technology IPOs have fallen sharply relative to consumer goods stocks, largely due to global macro conditions.
The report, produced in partnership with HSBC, notes that technology companies are now prioritizing growth.
“A typical company that is cash flow positive two years from now will have at least a 20-30% discount on its valuation in a low interest rate environment and will appreciate significantly in a high interest rate environment. We are seeing it now.” said it.
The company believes India’s public market capitalization has significant growth potential compared to other countries.
About 25% of the approximately $43 trillion market capitalization in the US can be attributed to technology or new age companies, including giants such as Apple and Amazon.
In India, which has a market capitalization of about $3.9 trillion, only about 1% comes from tech and new age companies, the report said.
“Looking at a similar situation over the past 20-odd years, we can see that even after interest rates start to fall, it will still take some time for the market to recover sustainably. is factored into the price.
Rohan Agarwal, partner at Redseer Strategy Consultants, said, “We’ve learned that it could take a lot more time, perhaps quarters, for the market to recover. We always see IPOs bounce back after the recession. I am,” he said.
According to the report, there are a number of indicators for start-ups to watch on their IPO journey. For example, market leadership, a clearly visible and responsive market overall, multiple use cases, predictable returns, high operational leverage, sustainable unit economics, and a clear path to monetization.