Flipkart, Paytm, Byjus, PhonePe to Zomato, Bernstein highlights top private Internet firms that may go for IPOs in 2021 and beyond
Some of the names highlighted in this report are the ones whose services all of us use in our day to day life – Flipkart, Paytm, Byjus, PhonePe, Zomato, Policybazaar, Delhivery, Big Basket. Bernstein says these companies may well go for IPOs in 2021 and beyond.
These companies have significant market share in their respective industry and they have thrived extremely well during tough situations in Indian market. As we have seen in the past few months, many new companies have got listed in Indian market and their IPOs were highly oversubscribed in the retail category too. Also, the majority of these IPOs did reward investors with extremely high returns which makes them all the more attractive.
Now, retail investors can monitor these companies in internet space extremely closely as they have a humongous growth potential in India and can give excellent returns to investors. Many retail investors are not only looking at these IPOs for listing gains but also as a strong investment theme which can yield handsome returns in the next few years.
THE INTERNET ECOSYSTEM THEME IN INDIA
The growth in Indian E-Commerce is driven by online penetration (still very low penetration in eCommerce and life services), offline integration (internet companies turning offline as an addressable market), and traffic concentration, which is the conglomerates premium.
The E-Commerce market is expected to grow from US $24 bn in 2018 to US $133 bn in 2025 (CAGR of 30%). Online shoppers are projected to reach 330 mn by 2025, driving online retail market growth. The increase in internet penetration, higher per capita income, broader selection, and convenient delivery are driving adoption and growth.
Life services and Food delivery which includes food delivery, ride hailing, and online travel booking is expected to increase from US
The latest development has been welcomed by the Indian startup ecosystem, which has been up in arms about Google’s Play Store policies
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After the announcement of Mini App store to fight against the monopoly orchestrated by Google in its Play Store, Paytm founder Vijay Shekhar Sharma on Thursday announced INR 10 crore investment fund for mini app developers at a virtual conference.
The developer conference also had Vishal Gondal, founder and chief operating officer, GOQUii, Anand Lunia, general partner at India Quotient, Rajesh Swahney of GSF Accelerator and Murugavel Janakiraman of Matrinomy.com as speakers. Around 5,000 developers registered for the virtual conference.
The latest development has been by and large welcomed by the Indian startup ecosystem, which has been up in arms about Google’s Play Store policies.
However, after facing backlash, Google has decided to extend its deadline for Indian app developers to comply with its play billing system to April 2022 from the original date of September 2021.
The move to support indigenuous app developers has come days after Paytm was taken down by Google from its Play Store for violating the company’s gambling policy. Within a few hours of the move, Google had restored the Paytm app on the Play Store, but Vijay Shekhar Sharma, has since then gone on record multiple times expressing his discontent with Google’s high-handed behavior of abusing its monopoly over the Indian internet ecosystem.
Many other prominent Indian entrepreneurs, including arch-rival PhonePe’s founder Sameer Nigam, have also come out in support of Paytm’s fight against Google.
Following this Paytm launched its own Mini App Store. Mini apps are a custom-built mobile
Internet giants Flipkart, Paytm, Zomato, Big Basket and others could be in for making their stock market debuts in 2021 and beyond that, said a report by global brokerage and research firm Bernstein. These Indian unicorns are now household names in tier-1 and tier-2 cities across India and have a significant stake in their respective industry. Recently, stock markets have witnessed a rush of initial public offerings, and retail investors have been at the forefront when it comes to subscribing to these issues. Individual investors have oversubscribed all the IPOs in recent months.
With the entry of these internet giants, the IPO market could be on its way to become more appealing to retail investors. Serving the e-commerce, fin tech, ed tech, and food delivery industry these companies are expected to see their business flourish with the augmentation and acceptance of the internet ecosystem in India. However, so far none of these companies have initiated any proceedings with the market regulator that could hint that they are seeking to be listed on bourses.
The leading e-commerce website in India is valued at $25 billion, according to the last round of funding which was in July this year. Backed by US-Retail giant Walmart, Flipkart is battling it out in the e-commerce space with Amazon and now Reliance Jio Mart. “E-Commerce in India has low penetration, but the market is growing rapidly. E-Commerce is expected to grow more than five-fold to US$133 Bn by 2025,” the report noted. Currently e-commerce has a low penetration in India with less than 5% of the market share but the same is pegged to cross 10% by
NEW DELHI (Reuters) – Dozens of India’s technology startups, chafing at Google’s local dominance of key apps, are banding together to consider ways to challenge the U.S. tech giant, including by lodging complaints with the government and courts, executives told Reuters.
Although Google, owned by Alphabet Inc GOOGL.O, has worked closely with India’s booming startup sector and is ramping up its investments, it has recently angered many tech companies with what they say are unfair practices.
Setting the stage for a potential showdown, entrepreneurs held two video conferences this week to strategise, three executives told Reuters.
“It’s definitely going to be a bitter fight,” said Dinesh Agarwal, CEO of e-commerce firm IndiaMART INMR.NS. “Google will lose this battle. It’s just a matter of time.”
He said executives have discussed forming a new startup association aimed chiefly at lodging protests with the Indian government and courts against the Silicon Valley company.
Nearly 99% of the smartphones of India’s half a billion users run on Google’s Android mobile operating system. Some Indian startups say that allows Google to exert excessive control over the types of apps and other services they can offer, an allegation the company denies.
The uproar began last month when Google removed popular payments app Paytm from its Play Store, citing policy violations. This led to a sharp rebuke from the Indian firm’s founder, Vijay Shekhar Sharma, whose app returned to the Google platform a few hours later, after Paytm made certain changes.
In a video call on Tuesday, Sharma called Google the “big daddy” that controls the “oxygen supply of (app) distribution” on Android phones, according to an attendee.