#Zomato IPO

[business2business000]

Zomato IPO, Share allotment, GMP and listing date

Zomato IPO GMP

Zomato IPO GMP First sale of stock, was oversubscribed in excess of multiple times on the last day of the contribution which was driven by serious areas of strength for a from the Qatar Islamic Bank and retail class.

It was opened from 14 to 16 July. On the third day which was additionally the day of Zomato Initial public offering, It got offers for 29.04 billion offers for an underlying public with a contribution size of 719.23 million.

The QIB-Qualified Institutional Purchaser class was bought in multiple times, and the Retail classification was bought in multiple times. Non-institutional financial backers are 34.80 times higher than workers, 62%.

As per market spectators, Zomato's Dark Market Premium (GMP) has chipped away at everything considered in the ₹16-18 domain. The dim market is an informal stage, where exchanging begins after the statement of the Initial public offering cost range until the Initial public offering shares are recorded.

The issue comprises of a Rs 375 million proposal to sell by the organization's most memorable financial backer, Data Edge, and a new ₹9000 crore issue. Interface Intime India Pvt Ltd. is the enlistment center for Zomato's Initial public offering and in light of the business share allotment which is probably going to be finished on Thursday i.e, July 22, Zomato shares are presumably going to be recorded multi week from now i.e July 27 on the Public Stock Trade (NSE) and the Bombay Stock Trade (BSE).)

Zomato raised ₹ 4,196 crores from a few conspicuous institutional financial backers as a component of the anchor book portion. It has apportioned 552.17 million value offers to moor financial backers for Rs 76 for each offer. The state run administrations of a few nations like Singapore, Blackrock, Goldman Sachs, and Abu Dhabi Venture Authority are a portion of the financial backers who took part in the primary book.

The outcome of Zomato IPO GMP could lean toward impending public contributions for New Age organizations like Paytm, Mobikwik, and Strategy Market. Organizations like Paytm and Mobikwik have as of late recorded their draft archives with market controllers like SEBI, Nykaa, PolicyBazaar, and others are additionally anticipated to do unexpectedly early.

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Swiggy IPO: All You Need to Know, Impact on Zomato Shares

Food and grocery delivery major Swiggy has filed its updated draft papers with markets regulator Sebi to raise funds through its much-anticipated Rs 10,000-crore IPO. The updated draft filing comes after Swiggy’s confidential offer document was approved by Sebi earlier this week. Swiggy IPO Size The proposed IPO comprises a fresh issue of equity shares worth Rs 3,750 crore and an offer-for-sale…

[secretstalks]

Rapido financial outlook according to Aravind Sanka

Bengaluru-based mobility startup Rapido has recently made headlines with a significant $200 million funding round, elevating its valuation to $1.1 billion and earning it a spot in the unicorn club. Co-founder and CEO Aravind Sanka has revealed that the company is on the brink of achieving cash-flow positivity, with expectations to become profitable within the next few months.

Rapido's impressive growth is underscored by its vast network of 1.7 million active monthly driver-partners, who collectively manage nearly 0.5 million orders daily across bikes, auto-rickshaws, and four-wheeler cabs. Sanka highlighted Rapido's dominance in the market, claiming a market share exceeding 40% in the two-wheeler and three-wheeler segments, positioning it ahead of competitors like Ola and Uber.

The company reported a substantial increase in revenue for FY23, reaching Rs 497.5 crore compared to Rs 157.9 crore in FY22. Despite this growth, losses also widened, from Rs 439 crore to Rs 674.6 crore, largely due to heavy investments in expansion and development. Notably, Rapido's zero-commission model for drivers continues to be a key differentiator. Drivers pay a fixed monthly fee of Rs 500 for every Rs 10,000 earned on the platform, with Sanka affirming the company's commitment to maintaining this model.

Rapido is now turning its attention to the burgeoning quick commerce sector, aiming to capitalize on the growing demand for rapid delivery services. The company currently supports last-mile food delivery for Swiggy, a major investor in its recent Series D funding round, and collaborates with ONDC. Discussions are underway with quick commerce players like Zepto and Zomato’s Blinkit to explore 10-30-minute delivery options.

The company is also leveraging its extensive fleet to support small direct-to-consumer (D2C) businesses, with plans to partner with logistics firms and work directly with various companies. On the sustainability front, Rapido is making significant strides with electric vehicles. In the NCR region, over 25% of orders are now delivered by electric vehicles, and the company aims to transition all deliveries in Delhi to electric within the next six months. Partnerships with fleet operators to develop exclusive electric vehicle fleets for two-wheelers, three-wheelers, and four-wheelers are also in progress.

Looking ahead, Rapido may consider an initial public offering (IPO) within the next two to three years as a potential step in its growth trajectory. The company's recent fundraising efforts have seen it secure close to $500 million, with WestBridge Capital leading the latest $200 million Series E round, joined by Think Investments, Invus Opportunities, and longstanding partner Nexus Venture Partners.

Ownership of Rapido's parent company, Roppen Transportation Services, as of FY23 includes WestBridge Capital with a 25.6% stake, Swiggy with 15.1%, Nexus Venture Partners with 9.7%, and Integrated Capital with 4.9%. The combined shareholding of co-founders Pavan Guntupalli, Rishikesh SR, and Aravind Sanka stands at 7.5%.

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[gyanfry]

Zomato Share Price: Investors Wealth Increased by 55% in Stock Market

Zomato Share Price Increased: Zomato Ltd. is making headlines in the stock market today, with its shares jumping by 5.58%, closing at ₹256.40. The stock opened at ₹248.05 and peaked at ₹261.60, sparking curiosity among investors. But what’s fueling this surge? Over the past five days, Zomato shares have risen by 2.67%, with an even more impressive 54.78% growth in the last six months—adding ₹90.85 to its value. Investors are asking, what’s driving this rapid growth? Zomato, launched in 2010, is more than just a food delivery service. It’s a comprehensive technology platform connecting customers, restaurant partners, and delivery personnel, helping users find restaurants, order food, and read reviews. The company’s ability to innovate in a competitive market and expand its user base has been key to its success. As of September 2024, Zomato ranks as the 784th most valuable company globally, boasting a market cap of ₹2.112 trillion. This impressive ranking highlights its growing influence, particularly in the food tech space. With its share price continuing to climb, Zomato's stock has captured the market’s attention. Could this be the beginning of an even greater rise, or will the momentum waver in stock market? Investors are watching closely as Zomato solidifies its position as a major player in the global market. Zomato entered the National Stock Exchange (NSE) of India on July 23, 2021, when it listed its initial public offering (IPO). Zomato is also listed on the Bombay Stock Exchange (BSE). Zomato's IPO was priced between Rs 72 and Rs 76, with a cutoff price of Rs 76. Read the full article

[optionperks]

Food delivery giant Swiggy targets $15 billion valuation in India IPO

SoftBank-backed Indian food delivery giant Swiggy is targeting a valuation of around $15 billion for its upcoming stock market offering to raise $1-1.2 billion, three people familiar with the matter said.

The deal would make it one of biggest Indian initial public offerings this year. Swiggy competes with Zomato in India's online restaurant and cafe food deliveries sector, and both have made major bets on the new so-called quick commerce boom where groceries and other products are being delivered in 10 minutes.

Swiggy received a shareholder approval in April for an IPO that would raise up to $1.25 billion and its confidential filing is expected to be cleared by the Indian markets regulator within a month or so. Following the approval it will file a public prospectus, according to the people, who declined to be named as the matter is private.The company is targeting a valuation of around $15 billion though the final figure can change, they said.

Swiggy said in response to a Reuters query that it could not comment on "any market speculation". Goldman Sachs said in April quick deliveries accounted for $5 billion, or 45%, of India's $11 billion online grocery market and forecast the segment to reach a 70% share of that market by 2030.

Reuters in June reported that Swiggy was increasingly focusing on its Instamart business.

Swiggy's food delivery business is profitable but grocery delivery Instamart business is still loss making, sources say.

[school56df]

Boom to Correction: Understanding the Fluctuations in Zomato's Share Price zomato share price analysis

 Introduction

Zomato, share price analysis India's leading on line food ordering and shipping platform, has captured the imagination of investors and clients alike. The agency's percentage price has been on a rollercoaster ride, experiencing extensive volatility.

The IPO and Initial Surge

Zomato stock performance IPO changed into a exceedingly anticipated event, with the problem oversubscribed via a huge margin. The inventory debuted at a top rate over its trouble fee, igniting investor enthusiasm. The company's strong logo popularity, huge user base, and potential for increase inside the burgeoning online meals transport marketplace contributed to the initial surge in its share fee

However, the euphoria soon diminished as investors began to attention on the corporation's financials. It is  like many different tech startups, turned into working in a especially aggressive marketplace with razor-skinny margins. The organization's direction to profitability seemed uncertain, main to issues among traders.

Factors Affecting Zomato's Share Price

Several factors have influenced Zomato's proportion fee:

Financial Performance

It is economic performance, specially its revenue boom, profitability, and coins burn, has been closely watched by way of buyers. While the agency has proven dazzling revenue increase, it has additionally incurred widespread losses. Any improvement in profitability or discount in cash burn is likely to definitely effect the percentage charge.

Competition

The severe opposition in the online meals transport marketplace, with gamers like Swiggy and Uber Eats, has placed pressure on Zomato's margins and marketplace percentage. Any adjustments within the competitive panorama can notably effect the employer's stock price.

Expansion Plans:

It is  enlargement plans, both geographically and into new commercial enterprise segments, have been intently monitored by way of buyers. Successful enlargement projects can boost investor confidence, even as setbacks can negatively effect the percentage price.

Investor Sentiment

Overall investor sentiment towards the tech region and the wider marketplace situations have additionally performed a function in Zomato's share rate movement. Periods of marketplace optimism tend to advantage the inventory, whilst bearish sentiment can result in selling strain.

Regulatory Environment

Changes in government rules associated with the food transport enterprise can effect  with operations and profitability. Any favorable or detrimental regulatory tendencies can impact the share charge.

Zomato's Business Model and Challenges

It is middle commercial enterprise version revolves around connecting clients with restaurants via its platform. The organization generates sales mainly from commissions on meals orders, advertising and marketing, and subscription fees. However, the agency faces several demanding situations, together with:

High Competition:

 The excessive competition within the food transport marketplace has caused charge wars and reductions, putting pressure on margins.

Unit Economics

Achieving profitability at the unit level stays a mission for Zomato, as the value of obtaining and keeping customers is excessive.

Dependency on Delivery Partners

It is based closely on shipping partners, and any issues related to their availability or pricing can effect operations.

Regulatory Risks

The food delivery industry is subject to various regulations, and changes in these regulations can impact business.

Outlook for Zomato

The destiny of Zomato's percentage rate relies upon on numerous elements, such as its ability to acquire profitability, manage competition, and execute its enlargement plans successfully. Factors affecting zomato share price .While the company faces demanding situations, it also has substantial increase opportunities in a hastily growing marketplace.

Investors must carefully evaluate of economic performance, aggressive function, and strategic path before making any investment selections. The organisation's ability to navigate the demanding situations and capitalize at the possibilities may be important for its long-time period achievement.

[consultantssigma]

Unlocking the Potential of Capital Gain Ventures

In the dynamic world of startups and innovation, capital gain ventures have emerged as a powerful investment strategy. By focusing on early-stage companies with high growth potential, investors can achieve significant financial returns. This blog explores the role of venture capital in capital gain ventures, highlights leading venture capital firms in India, and explains the different types of venture capital available to startups and investors.

What Are Capital Gain Ventures?

Capital gain ventures involve investing in startups and emerging businesses with the goal of realizing substantial capital gains when these companies grow and succeed. The strategy is to invest early, support the company's growth, and exit at a higher valuation, typically through acquisitions or IPOs.

Why Are They Important?

High Return Potential: Early investment in high-potential startups can lead to significant financial returns.

Economic Growth: By supporting innovative businesses, venture capital drives economic growth and job creation.

Innovation Catalyst: Venture capital funding fuels innovation, allowing startups to develop new products and technologies.

Venture Capital in India: A Thriving Ecosystem

India has become a global hotspot for venture capital investment. With a rapidly growing economy, a young and tech-savvy population, and a flourishing startup ecosystem, India offers immense opportunities for venture capital firms.

Key Trends in Indian Venture Capital:

Tech Boom: Investment in technology sectors, including fintech, e-commerce, and AI, is surging.

Increased Deal Sizes: The average deal size has grown as startups scale and seek more substantial funding rounds.

Diverse Sectors: While tech dominates, there is rising interest in sectors like healthcare, edtech, and clean energy.

Leading Venture Capital Firms in India

Sequoia Capital India: Known for its investments in companies like Zomato, Byju's, and Ola.

Accel Partners: Early investors in Flipkart and Swiggy, focusing on tech startups.

Nexus Venture Partners: Backed companies like Unacademy and Delhivery, supporting both early and growth-stage startups.

Matrix Partners India: Invested in Razorpay and Ola Electric, with a focus on early-stage tech companies.

SAIF Partners (Elevation Capital): Known for investments in Paytm and UrbanClap, supporting companies across various stages.

Types of Venture Capital

Understanding the different types of venture capital is crucial for both investors and startups. Each type of capital serves a specific purpose and aligns with different stages of a company’s growth.

1. Seed Capital

Purpose: Provides initial funding to turn an idea into a viable product.

Stage: Early concept or prototype phase.

Impact: Helps startups refine their business model and prepare for market entry.

2. Early-Stage Capital

Purpose: Financing for product development and initial market launch.

Stage: Early operations, typically pre-revenue or early revenue.

Impact: Supports startups in scaling operations, building teams, and launching products.

3. Growth Capital

Purpose: Funding for scaling, market expansion, and operational growth.

Stage: Established businesses with proven revenue models and growth potential.

Impact: Enables startups to expand their operations, increase market share, and drive significant revenue growth.

4. Late-Stage Capital

Purpose: Capital for mature companies preparing for an IPO or acquisition.

Stage: Well-established businesses with significant market presence and approaching profitability.

Impact: Supports companies in maximizing their market valuation and preparing for successful exits.

Benefits of Capital Gain Ventures

Investing in capital gain ventures offers several advantages:

Access to High-Growth Opportunities: Investors gain exposure to innovative startups with high growth potential.

Portfolio Diversification: Venture capital investments can diversify an investor’s portfolio, reducing risk and enhancing returns.

Active Involvement: Venture capitalists often play an active role in guiding startups, providing strategic advice, and leveraging their networks.

Challenges and Considerations

While capital gain ventures offer significant opportunities, they also come with challenges:

High Risk: Investing in early-stage startups can be risky, with the potential for loss if the business fails.

Long Investment Horizon: Returns on venture capital investments may take several years to materialize.

Market Dynamics: The success of venture capital investments can be influenced by market trends, regulatory changes, and economic conditions.

Conclusion

Capital gain ventures represent a powerful avenue for achieving substantial financial returns through strategic investments in high-growth startups. In India, the venture capital landscape is thriving, with a rich ecosystem of startups and investors driving innovation and economic growth.

Whether you are an entrepreneur seeking funding or an investor looking for high-potential opportunities, understanding the different types of venture capital and the trends in the market is crucial. By leveraging the expertise of leading venture capital firms, you can navigate the complexities of capital gain ventures and unlock significant value.

For more insights and support on venture capital and capital gain ventures, explore our services at Sigma Consultants. Join us in shaping the future of venture capital and driving the success of tomorrow’s innovators.

[foxnangelseo]

Nexus Ventures Invests in India

Nexus Venture Partners is a venture capital firm that focuses on investing in early and growth-stage startups in India and the US. The firm recently announced that it has closed a $700 million fund, which is one of the largest funds raised by a venture capital firm in India.

The fund will be used to invest in startups in a variety of sectors, including consumer technology, enterprise software, fintech, healthcare, and education. Nexus Venture Partners has a strong track record of investing in successful startups, including Delhivery, Postman, Unacademy, and Zenoti.

The firm has been investing in India since 2006 and has been a part of several successful exits, including the IPO of online food delivery platform Zomato. The firm has also been actively investing in the US market, with a focus on early-stage startups in the enterprise software and cybersecurity sectors.

With the new $700 million fund, Nexus Venture Partners aims to continue its support for India's startup ecosystem and help the next generation of entrepreneurs build successful companies. The fund will also enable the firm to expand its portfolio and invest in startups that are at the forefront of innovation and disruption in their respective industries.

The firm's investment focus on India is driven by several factors, including the country's large and growing consumer market, the availability of skilled talent, and the government's efforts to support the startup ecosystem.

India has one of the fastest-growing economies in the world, and its startup ecosystem has seen significant growth in recent years, with a growing number of successful startups across a range of industries. With a population of over 1.3 billion people, India represents a massive consumer market that is ripe for disruption and innovation.

Nexus Venture Partners has been investing in India since 2006 and has a strong track record of backing successful startups in the country. The firm's focus on early and growth-stage startups in India has helped it identify promising companies that are at the forefront of innovation and disruption in their respective industries.

Other big foreign countries can learn from Nexus Venture Partners' success in India by recognizing the potential of emerging markets and investing in early-stage startups. By doing so, they can tap into new consumer markets, support local talent, and foster innovation and entrepreneurship.

Moreover, foreign investors need to understand the local culture and ecosystem of the countries they invest in. India has a unique set of challenges, such as infrastructure, logistics, and regulatory hurdles, which can impact business operations. Therefore, foreign investors need to partner with local experts and entrepreneurs who have a deep understanding of the local market and can navigate these challenges effectively.

In conclusion, Nexus Venture Partners' success in India highlights the potential of emerging markets and the importance of investing in early and growth-stage startups. Foreign investors can learn from this by identifying promising markets, partnering with local experts, and fostering entrepreneurship and innovation. The closing of this fund is a positive development for India's startup ecosystem and reflects the growing interest of investors in the country's fast-growing startup ecosystem.

Fox&Angel is an open strategy consulting eco-system, put together by a top-line core team of industry experts, studded with illustrious success stories, learnings and growth. Committed to curate bespoke business & strategy solutions for each of your challenges, we literally handpick consultants from across the globe and industries who fit the role best and help you on your path to success.

This post was originally published on: Foxnangel

[infinysolution]

IPO Journey in India Through The Decades

India is experiencing a surge in initial public offerings (IPOs). In 2021, the Indian market saw year-on-year growth of 156 percent in IPO activity, as per an Ernst & Young report. This trend has carried into 2022 with the recent LIC IPO seeing record applications. The IPO boom is happening at the same time as a slew of aggressive, youthful first-time investors flood the market. But can we expect further growth or will the end result be unpleasant? Looking to the past may offer some hints.

The curious case of the 90s

There were 6,300 public issues between 1990-91 and 2021-22, which raised over Rs 8.4 lakh crore. However, more than two-thirds of the offerings were made in the first six years (1990-91 to 1995-96) alone. Out of these, the funds generated only accounted for only 4.8 percent of the total funds raised through such offers during the previous three decades. On the other hand, just 5.6 percent of the total issues given in the 30 years were raised in the last six years (between 2016-17 and 2021-22) even though they were high-value issues.

The dissolution of the Capital Controller of Issue (CCI), which had previously been in charge of establishing IPO price, was perhaps the main reason why the 90s saw a glut of issues. This is because the IPO price under the CCI regime was determined by the company’s book value rather than profits. As a result, corporations that issued initial public offerings during the CCI era frequently underpriced their offerings. If the firm in question had a track record of steady earnings growth, this worked to investors’ benefit.

The newly constituted market regulator Securities Exchange Board of India (SEBI) took over the role of CCI, giving corporations the freedom to price their offerings as they saw fit. SEBI was also tasked with reviewing the prospectuses of firms seeking to go public. 448 firms went public that year as a result of the dramatic change in the pricing law, more than triple the number that had gone public the previous year. However, that didn’t mean they were high-quality issues. With the enforcement of laws regarding prospectus and disclosures still thin on the ground, just about anyone who had a business could raise an IPO. Entrepreneurs looking for a quick buck hugely benefited from this scenario while investors always had another IPO on the horizon to make their money back if one turned out to be bust.

The bubble bursts

However, the bad news was around the corner. Towards the turn of the century, it was discovered that the vast majority of the firms that had obtained funds in the previous two or three years were fraudulent. They were termed as ‘vanishing firms,’ as the promoters vanished without a trace, leaving millions of investors with worthless paper in the form of share certificates. Following this, millions of investors left the stock market. For years, the major market for new offerings was dead, and investors even ignored mutual funds. Since the pandemic, however, India’s investor population has risen by around 15 million, after stagnating at 20 million for decades.

The present IPO scenario

A majority of the newfound investor population in India today is comprised of novice investors who have never experienced a significant market fall, let alone a lengthy bear market. The rise and fall of the market in the 90s should serve as a warning to them. The scenario today is resembling the frantic days of the mid-1990s. There are 30 issues going up for subscription every month, on average. Many of these issues are from loss-making businesses such as Zomato. However, since we commonly use their services, they appear familiar and seem like sound investment opportunities when the reality may be something else entirely.

The 1990s were characterized by phony operators pretending to be real businesses. In the 2020s, we are seeing tech start-ups, or ‘unicorns,’—companies that have billion-dollar valuations and enormous operations but no profits—looking to raise public funds and provide private equity investors an escape.

How to navigate the market

India is continuing to rise in prominence as a key emerging market for global investors. While the problems described above plague the market as does IPO underpricing, the increased distribution of information is only likely to get more investors on board. As more investors flood the market, increased investor awareness about how they can protect their money becomes even more important. For instance, new investors may be unaware that their family members were active in the stock market during the 90s boom or even before resulting in the possibility of unclaimed shares lying for them to claim.

There have been a number of documented cases where shares bought by an individual have been lying dormant for years without their family having any idea about it. Their family might even have changed cities, being totally unaware. If these shares lay unclaimed, they are deemed lost. Investors can petition the government to receive the unclaimed dividends and unclaimed shares that belong to them through IEPF recovery.

The team at Infiny Solutions ensures that you always have all the correct information about your shareholdings and any holdings that may be due to you. Our team has access to a vast database and is thus able to identify the rightful claimants of unclaimed shares and unclaimed dividends. We help ensure that you get the money that belongs to you through the claim of shares from IEPF without any risk of being defrauded. So, before you plunge into the newfound IPO boom in India, take some time to explore whether any unclaimed shares belong to you allowing you to avoid the hassle of investing in the current market altogether.

claim of shares from IEPF, IEPF recovery, IPO Journey, IPO Journey in India, IPO Journey India, unclaimed dividends, unclaimed shares

Source Blog :- https://infinysolutions.com/ipo-journey-india-through-decades/

[yourglobalexpansionpartner]

Tech Investments: Riding the Digital Wave in India

Invest in India: Unleashing the Digital Potential

Think of a bustling marketplace not with physical goods but with fluid, tech-savvy solutions. Hello, there. The Indian digital revolution is comparable to a jingling bazaar of bytes, with ideas thriving and gadgets practically redefining the landscape. Not only is this change in character metaphorical of the transformation of the market of a traditional town to that of a high-tech place, but it is also such in real life.

Byte-Sized Beginnings: From Code to Commerce

In the '90s, India registered its presence among the courts of digital history by becoming a provider of information technology (IT) services. In this context, companies such as Infosys and Wipro were the initial retailers that brought their goods and services to the virtual marketplace. We go forward a few years into the future, and today, these internet giant companies—Flipkart and Amazon—have changed their whole marketing strategy. They’ve made the market into an online cosmos where commerce only interferes with a pleasure akin to magic. Smartphones, our contemporary broomsticks, through services like Paytm and PhonePe, help people transact cash-free with their digital wallets, thereby digitalizing the marketplace.

Trailblazing Titans: TCS and Tata Technologies

For TCS and Tata Technologies, the digital revolution has been a driving force in defining their legacy. TCS, an IT company among the heavyweights, has moved beyond the basics, having realized the use of AI and blockchain. In contrast to automotive engineering, Tata Technologies, a sibling firm within the Tata Group, engineers solutions in automobiles and aerospace. Innovative solutions have today embraced the startup-to-IPO transition as a watershed sign of the landscape impact.

From 5G Whirlwinds to Startup Stardom

The chronology rewinds, and the Indian digital world’s engine has started to run. Imagine the future with 5G having the capacity to achieve faster internet speeds and all kinds of devices communicating through the concept of the Internet of Things (IoT). As computers learn autonomously using machine learning, Our market will be revamped into a turbocharged one, i.e., shine and strengthen the gadget connections, use smarter gadgets, set a new horizon, and explore so many possibilities.

Here is an amazing new turn—a rise of spoilers! How about those famous Indian startups like Zomato, Byju's, and their kind? These aren't just local breakthroughs; they are all game-changers in the global context. People often go to simple brick-and-mortar stalls without giving a second thought to where they are; suddenly they are in their favorite places.

Investment Opportunities: The Digital Stock Market

Now start viewing this as an opportunity to select the top-grade stalls in a market, and the market is a massive one. Instead of the big players that have their firmly established footing, the novelty is that which can be found with the disrupters, that is, those who have executive abilities in surfing the oceans of constant innovation.

Invest in India—a country where GDP is projected to reach $10 trillion by the end of this decade and $40 trillions by 2047. India’s FDI inflow has been impressive, with a 76% increase in manufacturing FDI in 2021–22. The sheer size and speed of India’s growth defy comparison. It’s an economic saga unfolding before our eyes.

Conclusion:

Investing in India isn’t merely a goal; it’s a journey marked by precision, insight, and transformative success. At Fox&Angel, we’re your premier global expansion partner, guiding brands through the intricate maze of global growth. We simplify the complexities by hand-holding businesses from their home countries to new markets. Let’s celebrate unprecedented growth together.

Ready to grow with India? Reach out to us at Fox&Angel and embark on your growth journey today! 

[firstwatercapital]

The Rise of the Value Investor

For more than a decade, we have been living with TINA. This does not refer to an unwelcomed houseguest, but with “There Is No Alternative” in terms of investments.

What this means is that since the crash of 2008 and more so in the West, we have been living with low interest rates and in some cases with 0 per cent. Thus, excess capital has had very few safe and decently yielding places to call a home, especially if the owner was looking to make it work. Saving accounts and high-quality fixed income instruments have been typically low yielding and this has steered investors towards other riskier asset classes. Some might say that certain sectors have generally become frothier over this period as they attracted this capital. These sectors might include momentum stocks, growth stocks, pre-IPO deals and the like. A lot of these themes rely on a narrative and the requirement for a number of assumptions to play out, making these types of companies difficult to value and riskier. But these narratives can be convincing, exciting, and popular – for instance tech and fast-growing stocks that will “disrupt” and “change the world”. For the most part, many of these great companies are also generally available at premium prices with the hope that their story will unfold and value will be created. They may even be loss-making.

With value investing, the company’s intrinsic value generally exists, but the market doesn’t recognise it. As long as there is no value trap or miscalculation in its fundamental value, the play is that the market will eventually acknowledge its true value. Value stocks are generally associated with more traditional industries, cash generative or tangible industries, which sadly do not have as exciting stories as their prettier cousins.

However, the relatively smooth economic paradigm that we have been living in has been horribly impacted by a number of events that have knocked both demand and supply– the pandemic, conflict, supply-chain issues, the Fed and by “Dirtiest of all dirty words” – inflation. The last of these is putting pressure on central bankers to increase interest rates.

So why may rising rates lead to the rise in value investing? Here are some thoughts, but as always, I reserve the right to be wrong.

This is because, as rates rise, investors will need to price risk a bit more and they will have alternative, less riskier assets to place their money. It wasn’t that long ago that a savings account in the West used to give 5 per cent interest. Growth stocks also have a longer horizon and a number of assumptions when and whether they will in some cases even become profitable. Thus, with higher rates, they will be more heavily discounted as rates increase.

PE inflation can be evidenced with Apple, a great company with great products. However, if you simply look at the PE ratio, it has received a re-rating. In 2016, it was trading at 10.35x and at the end of 2020, it was 35x. That means even though its performance and earnings have grown, its valuation has increased considerably based on the perception of valuation. Currently, the PE has fallen to 24.5x, but what is to stop it falling further? Why not 20x, why not 15x, where it was as recently as 2019? What about loss-making companies like Zomato, which is valued at 11.8x sales. Why not 10x, why not 5x sales? Where does the buck stop and the penny drop?

Why wouldn’t a value play suffer the same fate? After all, the same investor may take out money from all types of stocks and interest rates impact most companies. The reason that value stocks are less likely to suffer the same fate as their frothier cousins is that their value is more tangible/visible and already exists in many cases. It is supported by an actual cash yield and also their PE ratios can be in the single digits (i.e. relatively cheap). If they were to fall further, the company might be effectively paying you in just a few years to buy their stock. Thus, there is a limit to how low its perception can go and given that the intrinsic value is already higher than the market, the share price may still rise, at least in theory

The views expressed are the authors own. Please consult your financial advisor before making any investment decisions.

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[sachintagala]

Deepinder Goyal Net Worth, Success Story & Biography

Deepinder Goyal, the founder and CEO of Zomato, epitomizes the entrepreneurial spirit that thrives in India's food-loving culture. Zomato, a food delivery platform, emerged as a lifeline during the pandemic, offering individuals their favorite dishes at their doorsteps when restaurants were closed. Goyal's journey from a modest upbringing in Muktsar, Punjab, to cracking the IIT entrance exam and later founding Zomato reflects resilience and innovation. Recognizing the inefficiencies in food ordering, Goyal, alongside Pankaj Chaddah, launched Foodiebay.com, later rebranded as Zomato, which garnered significant investment and expanded globally. Zomato's evolution into a multi-service platform, including grocery delivery through Zomato Market, culminated in a successful IPO in 2021, solidifying its position as a leader in India's online food delivery sector. With a net worth of $306 million, Goyal's story underscores the power of perseverance, positive mindset, and seizing opportunities, inspiring aspiring entrepreneurs to chase their dreams.

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Zomato Fundamental Analysis, Share News & Events

Zomato जैसी कंपनी का उद्यमी स्वरुप और वित्तीय प्रदर्शन का विश्लेषण करते हुए, यह ब्लॉग Zomato के IPO उत्साह से लेकर उसके भविष्य की संभावनाओं तक की एक यात्रा प्रस्तुत करता है। IPO के बाद अस्थिरता, Zomato के विभिन्न व्यावसायिक सेगमेंटों के प्रकार, उनके बिजनेस मॉडल की महत्वपूर्ण विशेषताएं, लाभप्रदता और विकास के अंक, और भविष्य की योजनाओं के बारे में चर्चा करता है। Zomato के उद्यमी द्वारा दिखाया गया उत्साह और प्रेरणादायक कहानी, तकनीकी पारिस्थितिकी तंत्र के विकास में एक नमूना प्रस्तुत करता है।

[tkkansaltancyventures]

Why exit points in India are a difficult affair

For every aspiring entrepreneur in India dreaming of a grand exit – a unicorn IPO like Zomato's $1.3 billion debut or a blockbuster acquisition like Flipkart's $16 billion Walmart deal – the reality often paints a less vibrant picture. Navigating the exit landscape in this dynamic market can be akin to traversing a jungle, fraught with unexpected obstacles and demanding strategic agility. While the winds of change are undeniably shifting, the challenges remain significant, impacting diverse sectors and shaping the very trajectory of Indian entrepreneurship itself.

The current market conditions paint a complex canvas. While India boasts the third-largest startup ecosystem globally, with over 80,000 startups and a record $42 billion VC inflows in 2022, successful exits remain elusive. According to Bain & Co., only 0.5% of VC-backed companies achieve an IPO, compared to 10% in the US. This stark disparity speaks to a multitude of factors, including fragmented regulations like the complex SEBI guidelines for IPOs, limited liquidity in secondary markets, and a risk-averse investor landscape with a preference for established businesses over high-growth startups.

Kansaltancy Ventures is a Global Investment Management & IB firm into Venture Capital, Debt, M&A, Consulting & Virtual CFO with a network of 450+ VC Funds, Family Offices, Banks & Financial Institutions. Check https://www.Kansaltancy.com

The impact of these challenges ripples across diverse sectors. For tech startups, once touted as the golden geese of exits, the slowdown in global tech valuations has cast a shadow. Consider Swiggy, the food delivery giant, whose ambitious $4-5 billion IPO plans remain on hold amidst market volatility.

In contrast, infrastructure and social impact sectors, despite promising long-term potential, struggle to attract investors seeking quick returns, hindering their exit options. For instance, education startup BYJU's, despite boasting 100 million users and a $22 billion valuation, is actively exploring M&A options due to the complexities of IPOs in its sector.

However, amidst these complexities, whispers of change are stirring. The Indian government, acknowledging the need for a vibrant exit ecosystem, is implementing proactive measures like simplifying SEBI regulations for startups and encouraging M&A activity. Private equity firms like Blackstone and KKR are increasingly stepping in as secondary investors, providing much-needed liquidity for early-stage investors. This can be seen in Ola's recent $500 million secondary funding round, where existing investors exited partially, injecting liquidity into the company. These shifts, while still nascent, signal a growing understanding of the critical role exits play in fuelling the entrepreneurial engine.

Kansaltancy Ventures is a Global Investment Management & IB firm into Venture Capital, Debt, M&A, Consulting & Virtual CFO with a network of 450+ VC Funds, Family Offices, Banks & Financial Institutions. Check https://www.Kansaltancy.com

Looking ahead, the future of exits in India holds the promise of transformative advancements. The rise of blockchain technology, with its potential to automate compliance and track ownership, could revolutionize secondary trading, unlocking liquidity for early-stage investors. Embracing these innovations necessitates leaders with visionary foresight, capable of navigating the evolving technological landscape and utilizing its potential to create a more robust exit ecosystem.

The lessons learned from this evolving landscape extend far beyond the confines of boardrooms and pitch decks. Aspiring entrepreneurs must adopt a strategic approach to growth, prioritizing building sustainable businesses capable of attracting diverse exit options, not just chasing the elusive IPO dream. Investors, too, must adapt their decision-making strategies, understanding the long-term potential of ventures beyond short-term returns.

Educational institutions and industry bodies can play a crucial role by fostering entrepreneurial skillsets that encompass exit planning and financial literacy, preparing future generations for the complexities of the Indian market.

The entrepreneurial journey in India is an exhilarating yet arduous trek, a constant ascent towards unforeseen horizons. To truly conquer this journey, startups need to not only scale but also plan for strategic exits. Leaders who master the art of adapting to the changing landscape, building resilient businesses, and navigating the intricacies of the exit process will not only unlock sustainable success for themselves but also pave the way for a future where exits are not just occasional triumphs but become the norm, fuelling the growth of Indian businesses, and propelling the nation's entrepreneurial spirit onto the global stage.

So, as you embark on your entrepreneurial odyssey, remember that the ultimate victory lies not just in reaching the summit but also in crafting a clear path of descent. Embrace the challenges, hone your strategic agility, and become a pioneer in shaping a future where exits in India are not merely a dream but a well-charted route to achieving your entrepreneurial aspirations.

Let this not be the end, but the beginning of a conversation. Share your own experiences navigating the Indian exit landscape, the hurdles you faced, and the lessons you learned. Together, let us illuminate the path for future generations of entrepreneurs, ensuring that the Indian landscape becomes not just a fertile ground for startups but also a thriving ecosystem where ventures flourish and exits become a natural, celebrated milestone on the entrepreneurial journey.

About Tushar Kansal, Kansaltancy Ventures:

Tushar Kansal is the Founder and CEO of Kansaltancy Ventures, a distinguished professional recognized as a "Thought Leader" and "Thought Influencer." With a proven track record, Tushar has provided support to startups and growth-stage companies across various sectors. As a Venture Advisor with a Canadian VC Fund, he has contributed to over 350 investments spanning more than 60 countries.

Tushar's expertise is highly regarded in the business community, and his opinions are frequently sought by leading business news channels and publications, including CNN-News18, VCTV (Venture Capital Tv), Business World, Inc42, TechThirsty, and Digital Market Asia. He has delivered over 300 talks, available for viewing on YouTube and Google, showcasing his vast knowledge and insights.

Connected with 450+ investors globally, Tushar Kansal engages in sector-agnostic deal-making, with a typical ticket size ranging from USD 1-50 million.

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Email: tk@kansaltancy.com

LinkedIn: Tushar Kansal on LinkedIn

Personal Website: Tushar Kansal's Website

Blog: Indus Churning Blog

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