<ul><li>The changes proposed to <keyword id="6406536" type="General" weightage="20" keywordseo="angel-tax" source="Orion">angel tax</keyword> are ‘inclusive’ and will facilitate ongoing investments in the country, says Karthik Reddy, chairperson of IVCA. </li><li>The CBDT has been listening to the industry, said Sunil Goyal, managing director and fund manager at YourNest Venture Capital. </li><li>The move gives a lot of clarity to foreign investors and will help late-stage companies raise capital, says Abhimanyu Bisht, general partner at CapFort Ventures. </li></ul>The startup industry has faced multiple hurdles in the last one year — the fallout of the banking crisis triggered by the collapse of US’ Silicon Valley Bank on top of funding winter and rapid down-rounds. The Central Board of Direct Taxes (CBDT) has now changed its rules in relation to angel tax in a move that is expected to ease foreign investments and provide relief to the beleaguered startup industry. One of the changes to the angel tax is to include five more valuation methods in addition to the existing discounted cash flow (DCF) and net asset value (NAV) method for resident investors. In addition, it said that price matching for resident and non resident investors would be available with reference to investment by venture capital (VC) funds or specified funds. Karthik Reddy, managing partner of Blume Ventures and chairperson of industry body IVCA said that it’s an inclusive approach that will facilitate ongoing investments in the country. “The notification from CBDT and Ministry of Finance has been well received by the PE/VC industry as it provides more clarity to Indian <keyword id="6362513" type="General" weightage="20" keywordseo="startups" source="Orion">startups</keyword> and investors in relation to section 56(2)(viib). The proposed norms aim to expand valuation methodologies and eliminate price differentials between resident and non resident investors,” Reddy added. New beginnings Budget 2023-24 had proposed that any shares issued to non resident investors above the fair market value (FMV) will be subject to angel tax creating obstacles for foreign investments in Indian startups. The tax was earlier imposed only on resident investors. Fair market value shares refer to the estimated price at which shares of a company would be sold in an open and competitive market between a willing buyer and a willing seller. With the recent notification, several foreign investors including sovereign wealth funds, pension funds and endowment funds have been left out of the purview of the angel tax. Broad-based pooled investment vehicles or funds where the number of investors in such a vehicle or fund is more than 50 and which fulfills certain conditions have also been excluded. Sunil Goyal, managing director and fund manager at YourNest Venture Capital said that the CBDT has been listening to the industry. “I am very happy that the funding obstacle that had come by will be removed through the CBDT notification. However, there is still a challenge in the proposed guidelines. The number 50 is restrictive. It is an arbitrary number that needs to be going anyway. Normally the number of investors is much lesser,” said Goyal. A push to late-stage funding Most experts, however, believe that the government has taken a step in the right direction. The startup funding that hit a high during the pandemic has been suffering on several counts as VCs and private equity (PE) investors tighten their purses amidst high inflation and high interest rates in major economies and as they get more stringent with startups, demanding profitability. In the first quarter of 2023, Indian startups raised $2.1 billion. In the same quarter last year, they raised $9.3 billion — registering an over 77% fall. The last time the quarterly funding was lower than $2.1 billion was in the second quarter of 2018 – when it was at $1.7 billion. The worst-hit have been late-stage deals. According to a report by PricewaterhouseCoopers, late-stage funding in India startups declined 52% in 2022. However, the proposed guidelines are expected to bring some relief. “I feel what's been done will really help especially late-stage companies to raise capital because it basically gives a lot of clarity for foreign investors. What we have been calling the funding winter, means that funding has been a little slow in terms of late-stage investments from foreign investors. This could help in increasing the funding being received by companies that are typically in the Series C round of funding,” said Abhimanyu Bisht, general partner at CapFort Ventures. Bisht adds that a lot of companies have been trying to raise funds in the late stage due to many factors including delayed public market entry. While PharmEasy and Udaan have delayed their public market debuts, the stock markets have turned tougher for internet-based companies like Zomato, Nykaa, Paytm and more, which have shed a large chunk of their value since listing. “Anyways, if you see the public markets also, we are seeing a lot of positive inflow of foreign institutional investors in the last two-three months. But I think that that trend could further increase,” opined Bisht. While foreign institutional investors (FIIs) have been net sellers this year, the tide has turned in <a href="https://www.businessinsider.in/finance/news/fii-inflows-may-remain-consistent-in-may-with-turn-in-rate-cycle/articleshow/100234813.cms">May with a change in interest rate cycle</a>. Experts hope that some of the renewed interest will spill over to the unlisted markets with the latest changes in angel tax norms boosting sentiments.

Angel tax changes to cheer investors, aid late-stage funding say experts

<ul><li>Even after the <keyword id="6473060" type="General" weightage="80" keywordseo="syrma" source="Orion">Syrma</keyword> SGS IPO received an overwhelming response, experts believe that another IPO season is not on the horizon.</li><li>The regulatory approval for at least 30 IPOs received in the last financial year will lapse by the end of the year. 31 IPOs received an approval this financial year.</li><li>Companies will watch the performance of the next few IPOs and the secondary markets before opening issues, say two market experts that Business Insider spoke to. </li></ul>Even before the public offer of <keyword id="14738256" type="General" weightage="50" keywordseo="syrma-sgs-tech" source="Orion">Syrma SGS Tech</keyword> was oversubscribed 33 times last week, three companies – Digit General Insurance, Concord Biotech and <keyword id="1126663" type="General" weightage="50" keywordseo="balaji-solutions" source="Orion">Balaji Solutions</keyword> – had filed their papers with the markets regulator in the third week of August to go public. Another IPO DreamFolks is all set to open for subscription this week. Yet, experts are not convinced that another IPO season is on the horizon. “It’s too early to say that the season of IPOs has started. A lot of companies in the pipeline will be watching for two things – the response that the next few IPOs get and also the market momentum. If the markets remain volatile, companies will allow their approvals to lapse,” Pranav <keyword id="3517398" type="General" weightage="80" keywordseo="haldea" source="Orion">Haldea</keyword>, managing director of Prime Database told Business Insider India. While a few companies like PharmEasy, Inox Green Energy and <keyword id="12727880" type="General" weightage="50" keywordseo="nandan-terry" source="Orion">Nandan Terry</keyword> withdrew their draft papers, scrapping IPO plans, at least four more companies’ approvals will lapse by the end of August. The approvals for another 15 will lapse by the end of the year. “IPOs are a once-in-a-lifetime event for companies and they would want to do it at the perfect time. If the market is not giving them the valuation that they expect, they will not go ahead,” said Haldea. Only <keyword id="4093871" type="General" weightage="50" keywordseo="utkarsh-small-finance-bank" source="Orion">Utkarsh Small Finance Bank</keyword> has re-filed its IPO papers, even as many more companies that planned to go for an IPO in the last financial year let it lapse. Over 32 IPOs that received a go ahead in 2021-22 have been put on hold, while 31 more received an approval in 2022-23. Of these 31 from the current financial year, only Syrma and DreamWorks have gone ahead and opened their issues to the public. A lot of companies file DRHPs assuming issues will sail through but a number of factors like valuations and demand for fresh issuances among domestic and foreign investors play a key role. “There are 10-12 conditions that they have in mind during the filing and many of these conditions may change,” said Arun <keyword id="6358183" type="General" weightage="80" keywordseo="kejriwal" source="Orion">Kejriwal</keyword>, founder of Kejriwal Research &amp; Investment Services. A lot of IPOs from last year that are still in the pipeline, had issue sizes between ₹400-800 crore. However there are a few like Emcure <keyword id="6363818" type="General" weightage="50" keywordseo="pharma" source="Orion">Pharma</keyword> which had plans to raise over ₹4,500 crore as well. The decision to go ahead with an IPO will not depend on the size of the issue, but on pricing, says Kejriwal. “When the momentum is good, subscriptions and listings are good, it’s possible to slip in a bad issue but not when the market is still picking up. After <keyword id="30067" type="General" weightage="50" keywordseo="rbi" source="Orion">RBI</keyword> capped the amount that HNIs (high networth individuals) can borrow to invest in IPOs to ₹1 crore, they will have to invest their own funds and that will make a huge difference to subscriptions,” says Kejriwal. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/meet-indias-real-gully-boy-vidit-aatrey-of-meesho-is-taking-the-entrepreneurial-dream-deep-inside-bharat/articleshow/93702491.cms">Meet India’s Real Gully Boy: Vidit Aatrey of Meesho is taking the entrepreneurial dream deep inside Bharat</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/upi-transactions-will-remain-free-government-says-it-has-no-plan-to-charge-them/articleshow/93702248.cms">UPI transactions will remain free, government says it has no plan to charge them</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-slips-517-points-goes-below-the-60000-mark/articleshow/93701486.cms">Sensex slips 517 points, goes below the 60,000-mark</a>

Too early to say primary market is seeing a revival

<ul><li><keyword id="982553" type="General" weightage="20" keywordseo="indian-startups" source="Orion">Indian startups</keyword> raised only $1.6 billion in April 2022, which is almost half of the capital raised last year in the same period.</li><li>VerSe Innovation — the parent company of Dailyhunt and Josh — raised the biggest funding round last month.</li><li>Indian startups are currently facing pressure from investors to focus on profitability, We Founders Circle’s Gaurav VK Singhvi added.</li></ul>Things are not as bright for the Indian startup ecosystem as they were last year. The segment which thrived during the pandemic is now facing the brunt of the Russia-Ukraine war, leading to a slowdown in their capital raising ability. According to the latest report by IVCA-EY, Indian startups raised only $1.6 billion in April 2022. This is almost half of the capital raised by the same ecosystem in April 2021. To make matters worse, no company entered the <keyword id="152045" type="General" weightage="20" keywordseo="unicorn" source="Orion">unicorn</keyword> club last month whereas April 2021 had flagged off the momentum of unicorn creation last year with eight new additions. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Month </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Number of Unicorns </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Unicorns Created </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April 2021 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Meesho, PharmEasy, CRED, Groww, ShareChat, Gupshup, Chargebee, Urban Company, </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April 2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Media reports <cmsannotation type="cmsannotation" annotationid="Slowdown in unicorn creation" comment="subhead" text="Slowdown in unicorn creation">Slowdown in unicorn creation</cmsannotation> According to several experts Business Insider spoke to, the <a href="https://www.businessinsider.in/business/startups/news/he-slowdown-in-unicorn-creation-may-be-there-for-the-next-two-months-too/articleshow/91116175.cms">slowdown in unicorn creation </a>is likely to continue all through the second quarter till June 2022 but this is not something to worry about. Gaurav VK Singhvi, cofounder of investment firm We Founder Circle, further explained that the startup market has been witnessing an upward trend for the last 18 months and “now for a few months it looks a little slow”. He also specified that the trend would be quite positive in the long term and more unicorns may be created this year. But there is more to it than just the number of unicorns. <cmsannotation type="cmsannotation" annotationid="Even higher valuation may be an issue" comment="subhead" text="Even higher valuation may be an issue">Even higher valuation may be an issue</cmsannotation> The decline in funding in April 2022 is majorly because of the decline in large funding rounds. VerSe Innovation — the parent company of Dailyhunt and Josh — raised the biggest funding round last month when it bagged $805 million at a<a href="https://www.businessinsider.in/business/startups/news/josh-dailyhunt-parent-company-verse-raises-805-million-takes-valuation-to-5-billion/articleshow/90675633.cms"> valuation of $5 billion</a>. This represented nearly half of the capital raised by Indian startups in April. While Dailyhunt has been able to increase its valuation amid this funding slump, not all have been able to do so. According to Media reports, ecommerce company Meesho has been trying to close another funding round at a valuation of around <a href="https://timesofindia.indiatimes.com/business/india-business/meesho-to-raise-1bn-at-valuation-of-8bn/articleshow/87859070.cms">$8 billion</a> but no investor is willing to accord it to the company at the moment. Instead, the investors are unwilling to accord any higher valuation to Meesho — which was valued at $4.9 billion last year — due to its monthly cash burn rate of $46 million. Singhvi of We Founder Circle explained that several startups have ignored their bottom line for a long time and the investors are now putting pressure on these companies to focus on their finances and numbers. “Revenue is all good but now they are looking at profitability and long term sustenance,” he added. <cmsannotation type="cmsannotation" annotationid="Layoffs come off as a rescue plan for several startups" comment="subhead" text="Layoffs come off as a rescue plan for several startups">Layoffs come off as a rescue plan for several startups</cmsannotation> Several companies have already started preparing for the worse. According to Business Insider’s calculations, Indian startups laid off<a href="https://www.businessinsider.in/business/startups/news/indian-startups-have-already-laid-off-over-5700-employees-in-the-last-four-months/slidelist/90980198.cms"> 6,900 employees</a> in the first four months of 2022. In May alone, unicorns like Vedantu and <a href="https://www.businessinsider.in/india/news/cars24-is-the-latest-unicorn-to-lay-off-600-employees-after-unacademy-and-vedantu/articleshow/91660002.cms">Cars24 fired over</a> 1,200 employees. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Layoff </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Better.com </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3000 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ola </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,100 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Unacademy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">925 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vedantu </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">624 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cars24 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">600 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Trell </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">300 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Lido Learning </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">200 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Furlenco </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">200 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Meesho </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">150 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">OkCredit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8,139 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Media Reports, Company Announcements Vamsi Krishna, chief executive officer and co-founder of Vedantu, in a<a href="https://www.businessinsider.in/business/startups/news/after-unacademy-vedantu-has-laid-off-600-people/articleshow/91643403.cms?utm_source=google_newsstand&amp;utm_medium=google_rssfeed&amp;utm_campaign=news_referral"> blog post noted </a>that they had to take this harsh decision since capital may be scarce in the upcoming quarters due to “war in Europe, impending recession fears, and Fed rate interest hikes”. Yogita Tulsiani of iXceed Solutions and Sarbojit Mallick of Instahyre emphasised that there are more layoffs to come in the near future. Tulsiani, the managing director and cofounder at global tech-recruiter provider iXceed Solutions, noted that both low-funded and highly-funded startups would be impacted by this drive as most companies carried out aggressive hiring drives during the start of the pandemic and are not able to handle their workforce now. Each company has a long term plan and unprecedented scenarios such as the events happening now can impact their hiring and team sizes, Sarbojit Mallick, cofounder of advanced hiring platform Instahyre, added. He noted that the plan would also include consolidation of internal departments, streamlining of operations and tightening of the gaps. “The fear [for the workforce] is further mounted by rationalisation in funding which will weed out quality companies and hence lead to winding up of some startups,” Neha Khanna, director at management consultancy firm ValPro, concluded. SEE ALSO <a href="https://www.businessinsider.in/business/news/heatwave-has-turned-acs-from-a-luxury-to-a-necessity-but-margins-remain-muted-for-the-players/articleshow/91655568.cms">Heatwave has turned ACs from a luxury to a necessity — but margins remain muted for the players</a> <a href="https://www.businessinsider.in/tech/news/the-state-of-uttar-pradesh-and-how-its-been-feeding-facebook-ad-revenues/articleshow/91660700.cms">The state of Uttar Pradesh and how it’s been feeding Facebook ad revenues</a> <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/prudent-corporate-advisory-services-surprises-ipo-investors-with-nearly-5-listing-gains/articleshow/91678900.cms">Prudent Corporate Advisory Services surprises IPO investors with nearly 5% listing gains</a>

The worst for Indian startups is yet to come — be prepared for layoffs, unicorn slowdown and startup shutdowns in 2022

<ul><li><keyword id="55847" type="PERSON" weightage="20" keywordseo="postman" source="Orion">Postman</keyword> has overtaken BrowserStack in valuation with this round.</li><li>The company has now raised more than $430 million across four rounds, and was valued at $350 million in 2019.</li><li>Postman will use the funding to hire across multiple verticals like sales, marketing, product and engineering.</li></ul>San Francisco and Bengaluru-based software-as-a-service (<keyword id="6395918" type="General" weightage="20" keywordseo="SAAS" source="Orion">SaaS</keyword>) platform Postman has raised $225 million in a Series D round, at valuation at $5.6 billion. The round was led by existing investor <keyword id="7496169" type="General" weightage="20" keywordseo="insight-partners" source="Orion">Insight Partners</keyword>. New investors like Coatue, Battery Ventures, BOND, DoorDash product leader Gokul Rajaram and Freshworks founder Girish Mathrubootham also participated in the round, along with existing investors CRV and <keyword id="175881" type="COMPANY" weightage="20" keywordseo="Nexus-Venture-Partners" source="Orion">Nexus Venture Partners</keyword>. Founded in 2014 by Abhinav Asthana, Abhijit Kane, and Ankit Sobti, Postman helps developers and companies simplify their application programming interface (API) workflow. It also enables the companies to streamline collaboration and create API faster. The company has over 17 million developers and 500,000 organisations on its platform. Postman will now use this Series D funding to hire across multiple verticals like sales, marketing, product and engineering. The company will also invest in its community of developers across the globe, support students through innovative APIs and contribute towards open source projects. The company has now raised more than $430 million across four rounds. Postman had raised $150 million in 2020 at a valuation of $2 billion valuation in its Series C investment round led by Insight Partners. It was valued at $350 million in 2019. In June 2020, BrowserStack was positioned as the highest valued venture capital (VC) funded SaaS company in India. The company had raised $200 million in a Series B round led by US-based investment firm BOND, at a valuation of $4 billion. Postman has overtaken BrowserStack in valuation with this round. Other Indian highest valued <keyword id="3499933" type="PERSON" weightage="20" keywordseo="SaaS-startups" source="Orion">SaaS startups</keyword> are Zoho, Freshworks, Icertis, Druva, Postman, Zenoti and ChargeBee in the ‘unicorn club’. A unicorn is a privately valued company with a valuation of over $1 billion. Zoho is not venture capital-backed and its valuation is not publicly known. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SaaS unicorns </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Valuation </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Postman </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5.6 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BrowserStack </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$4 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Freshworks </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$3.5 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Icertis </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$2.8 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Zenoti </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.5 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Chargebee </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.4 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">MindTickle </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.2 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Highradius</td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Druva </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1 billion </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>SEE ALSO <a href="https://www.businessinsider.in/retail/news/a-third-of-internet-users-would-be-actively-shopping-online-by-the-end-of-this-decade-offline-retail-to-take-a-back-seat/articleshow/85390712.cms">A third of internet users would be actively shopping online by the end of this decade, offline retail to take a back seat</a> <a href="https://www.businessinsider.in/business/startups/news/with-pharmeasy-mobikwik-and-ixigo-all-set-to-hit-the-public-market-orios-plans-to-go-deeper-into-pre-ipo-bets/articleshow/85359703.cms">With PharmEasy, MobiKwik and ixigo all set to hit the public market, Orios plans to go deeper into pre-IPO bets</a> <a href="https://www.businessinsider.in/business/auto/news/tamil-nadu-government-is-upset-about-losing-money-on-luxury-cars/articleshow/85322536.cms">Tamil Nadu government is upset about losing money on luxury cars</a>

Postman is now the highest valued VC funded-SaaS startup in India, after a $225 million fundraise

<ul><li><keyword id="6354742" type="General" weightage="20" keywordseo="flipkart" source="Orion">Flipkart</keyword>, <keyword id="8681398" type="General" weightage="20" keywordseo="urban-company" source="Orion">Urban Company</keyword> and BigBasket have been the winners among all others by offering fair wages.</li><li>But none of the workers are able to earn enough to have a lining after cost, a report by Fairwork added.</li><li>The lack of fair representation can be seen as one of the major reasons why the condition of <keyword id="7771650" type="General" weightage="20" keywordseo="gig-workers" source="Orion">gig workers</keyword> has not improved.</li></ul>Platforms like BigBasket, Flipkart and Urban Company have been ahead of peers in offering fair wages to the contractual workers who lift the heavy weight of the entire business model and multi-billion dollar valuation. But the sad fact is even those salaries are not living wages, according to the Fairwork India report of 2021. The continued decrease in rate cards and incentives, along with increased input costs of petrol and platform commissions, have made matters worse for the Indian gig workers like delivery partners and drivers. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Avg income Range, including cost </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Flipkart </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹14,500-₹25,000 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Urban Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹36,000* </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BigBasket </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹18,000-₹24,000 </td></tr></tbody></table>Source: *Urban Company, Apna.com Fairwork rates digital platforms on their treatment of gig workers who work for them. The organisation focuses on five principles — fair pay, fair conditions, fair contracts, fair management, and fair representation. The study awards a basic and an advance point to a platform for each principle. The organisation judged 11 digital platforms — Flipkart, Urban Company, BigBasket, Swiggy, Zomato, Amazon, Dunzo, PharmEasy, Ola, Uber and Porter. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Criteria </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Player, with basic and advance* points </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">How to get advanced ‘(+1)’ points? </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fair Pay </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BigBasket, Flipkart, Urban Company committed </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Worker could make local living wage after costs </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fair Condition </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amazon, Flipkart (+1), Urban Company (+1) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Provide monetary support to workers during difficult circumstances. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fair Contract </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BigBasket, Flipkart (+1), Swiggy(+1), Zomato (+1) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Power asymmetry between platforms and workers, and the limited negotiating capacity of the latter. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fair Management </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BigBasket (+1), Dunzo, Flipkart (+1), PharmEasy, Swiggy (+1), Urban Company (+1) and Zomato all awarded the basic point </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Demonstrate inclusiveness by proactively seeking to employ marginalised populations and by taking an active stance to eliminate discrimination on their platforms. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fair Representation </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">None </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Workers have a say in the conditions of their work to support democratic governance. </td></tr></tbody></table>*Advance point is denoted by (+1) Source: FairWork 2021 So, how do the workers ensure that they get a fair share of the boom in the gig economy? FairWork recommends unions. The companies don’t like the idea and even the government may not be inclined to encourage this, based on what the last Chief Economic Advisor KV Subramanian had to tell Business Insider in September 2021. “It is disconcerting to note that despite the rise in gig worker collectivisation in the country, none of the platforms studied expressed a willingness to recognise a collective body of workers… Irrespective of their employment classification, workers should have the right to organise in collective bodies, and platforms should be prepared to engage and negotiate with them,” FairWork added. <div type="image" title="BigBasket, Flipkart and Urban Company may have paid fair wages, but it wasn’t enough to earn a living" msid="88946284" hostid="261"></div> Balaji Parthasarathy, lead investigator at Fairwork, told Business Insider that he has reached out to three-four investors of these digital platforms but so far their response has been lukewarm. The organisation now aims to reach out to foriegn-based limited partners, who invest in venture funds, to raise the condition of the Indian gig workers. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/business/auto/news/tesla-india-prospects-get-a-boost-as-states-compete-with-each-other-to-invite-elon-musk-to-their-backyard/articleshow/88890951.cms">Tesla India prospects get a boost as states compete with each other to invite Elon Musk to their backyard</a> <a href="https://www.businessinsider.in/stock-market/news/hcl-technologies-shares-down-7-as-employees-are-leaving-the-firm-at-a-faster-rate-than-ever-before/articleshow/88944681.cms">The street is dumping HCL Tech shares because its employees are leaving at a faster rate than ever before</a> <a href="https://www.businessinsider.in/budget/news/even-after-the-lic-ipo-indian-government-may-be-well-short-of-its-divestment-target/articleshow/88938799.cms">Even after the LIC IPO, Indian government may be well short of its divestment target ⁠— for a third year in a row</a>

The best pay masters in the gig economy aren’t good enough

<ul><li>Share prices of most new-age start-ups have been battered since the start of this year due to market corrections.</li><li>A recent report by investment bank DC Advisory notes that these market corrections are likely to reverse by next year.</li><li>A strong listing can even bring back the enthusiasm quicker</li></ul>It has been a tough year for India’s new-age start-ups as shares of recently listed companies like <keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword>, PolicyBazaar, Nykaa and <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword> take a beating at the bourses while funding dries up for private firms. Global market corrections due to the Russian-Ukraine conflict and weak business fundamentals are being blamed for the current situation Zomato — which crossed $13 billion in market capitalisation last year — is now valued less than its unlisted rival Swiggy at $5.5 billion. Paytm — which was the highest valued start-up in India at one point at $18 billion — is now barely at $5.9 billion at the moment. A recent report by investment bank DC Advisory noted that these “market corrections are not sticky” and were likely to come down as early as the first half of 2023. A strong <keyword id="6357440" type="General" weightage="20" keywordseo="stock-market" source="Orion">stock market</keyword> listing could help bring back the cheer. “A few positive events in the near future such as a strong listing for a digital-first company could have a domino effect and bring enthusiasm back to the market quicker than we all anticipate,” the investment bank said, while adding that the current market scenario has been a deterrent to companies planning to go public. <cmsannotation type="cmsannotation" annotationid="Companies go slow on IPO plans" comment="subhead" text="Companies go slow on IPO plans">Companies go slow on IPO plans</cmsannotation> The year 2021 saw India’s young start-up ecosystem mature as ten <keyword id="15935" type="General" weightage="20" keywordseo="tech-companies" source="Orion">tech companies</keyword> — namely EaseMyTrip, Zomato, CarTrade, Nykaa, Fino, PolicyBazaar, Paytm, Nazara, RateGain and MapMyIndia — made their public debut. One of the highlights of 2021 was the listing of software-as-a-service (SaaS) company Freshworks which had a stellar debut on the Nasdaq, turning<a href="https://www.businessinsider.in/stock-market/news/freshworks-ipo-500-crorepatis-12-billion-market-cap-and-more-that-emerged-from-indias-first-saas-listing-at-nasdaq/articleshow/86445614.cms"> 500 of its employees into millionaires</a>. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change since listing </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nykaa </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-39.75% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Zomato </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-54.91% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Paytm </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-52.77% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Delhivery </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.02% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Freshworks </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-72.68% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">PolicyBazaar </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-52.02% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">EaseMyTrip </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">263.71% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">MapMyIndia </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.29% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nazara Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-42.06% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">RateGain </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-12.62% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CarTrade </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-55.74% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fino Payments Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-53.54% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Veranda Learning </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">58.49% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Date: As of 11:14 am, July 14, 2022 However, most of these companies, including Freshworks, have lost their spark in the stock market mainly due to market correction, business performance and the ongoing Russia-Ukraine crisis. The disappointing market debut of Life Insurance Corporation, one of the most anticipated IPOs, and its continued underperformance, down 18 percent since its debut in May, has made more companies wary of going ahead with an IPO this year. “Tech IPOs, which saw a frenzy of activity last year, have delivered a disappointing performance for investors. We expect limited movement in IPO markets in the near term as investors try to rebuild conviction on digital stocks,” DC Advisory added. Companies like OYO, ixigo, Droom, Mobikwik, PharmEasy and SnapDeal were planning to go for a public listing this year and have already filed their papers with the Securities and Exchange Board of India (SEBI). Mobikwik and ixigo have also received an approval. Mobikwik, in a previous <a href="https://www.businessinsider.in/business/startups/news/mobikwik-ipo-is-not-happening-this-quarter/articleshow/89891819.cms">conversation with Business Insider</a>, has said that it will wait for the right market conditions to go public. <cmsannotation type="cmsannotation" annotationid="Prepping for a funding winter" comment="subhead" text="Prepping for a funding winter">Prepping for a funding winter</cmsannotation> Several stakeholders, investors and entrepreneurs have been girding for a funding winter that is expected to last anywhere between 12-24 months. The start-ups have already started laying off people, impacting at least <a href="https://www.businessinsider.in/business/startups/news/indian-startups-have-already-laid-off-a-little-over-11000-people-in-the-last-six-months/articleshow/92541036.cms">11,695 employees</a> this year alone. According to several experts Business Insider has spoken to, investors have a limited capital to invest and that is making them even more choosy. Industry’s biggest players, who already have heavy backing, may not face many hurdles in raising funds but smaller players may struggle. Investors have also become strict about valuing businesses. Media reports suggest that e-commerce company Meesho has been trying to close another funding round at a valuation of around <a href="https://timesofindia.indiatimes.com/business/india-business/meesho-to-raise-1bn-at-valuation-of-8bn/articleshow/87859070.cms">$8 billion</a> but has not been able to find investors. This tightening of the funding from venture capitalists (VC) and private equity (PE) is likely to spur a lot more mergers and acquisitions in the tech sector, the report added. ”We believe a shakeout within PE/VC deals in the tech sector was long overdue and expect a lot more consolidation in the market going forward,” the report said. SEE ALSO <a href="https://www.businessinsider.in/tech/enterprise/news/indian-tech-firms-contributed-nearly-200-billion-to-the-us-economy-creating-2-lakh-jobs/articleshow/92854889.cms">Indian tech firms contributed nearly $200 bn to the US economy, more than the combined economies of 20 US states</a> <a href="https://www.businessinsider.in/business/news/fintechs-are-helping-indian-msmes-get-over-their-biggest-challenges-but-there-is-still-a-long-way-to-go/articleshow/92848620.cms">Fintechs are helping Indian MSMEs with their biggest challenge — data and the lack of it</a> <a href="https://www.businessinsider.in/business/startups/news/karan-virwani-kunal-shah-and-4-other-startup-ceos-invest-in-a-real-estate-venture/articleshow/92829944.cms">Karan Virwani, Kunal Shah and 4 other startup CEOs invest in a real estate venture</a>

As Zomato, Paytm and new-age start-ups struggle at bourses, their unlisted peers stare at funding winter

<ul><li><keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> led the e-commerce segment in India in 2020 with 66% share of the $8.3 billion festive season sale, as per a report. </li><li>Walmart is on track to record $75 billion in global e-commerce by the end of this year. </li><li>Walmart continues to report strong e-commerce growth from India via Flipkart, Mexico and China.</li></ul>Walmart is going big on e-commerce flash sales as it continues to see strong sales throughout festive seasons across its major markets. In India, the US-based retailer would be prioritising Flipkart’s Big Billion Days sale held in November during the Indian festival of Diwali, Walmart International’s President and Chief Executive (CEO) Judith McKenna said in a quarterly earnings call held on August 17. According to consultancy firm RedSeer’s <a href="https://www.business-standard.com/article/companies/amazon-flipkart-and-others-clock-8-3-billion-in-festive-gross-sales-120112700033_1.html">report</a>, India’s online festive season sale during October-November 2020 raked in $8.3 billion in gross sales. Flipkart led the season with 66% of the total sales. Flipkart Internet Private Limited, the e-commerce entity, reported a revenue of ₹6,318 crore in the financial year 2020, as per data sourced from <keyword id="4159482" type="PERSON" weightage="20" keywordseo="Tofler">Tofler</keyword>. “We're continuing to see strength in all of the categories that we've got, but we're prioritising the holiday season coming up. And in India, we're prioritising Big Billion Day, which is their Diwali festival, which is coming up in early November,” McKenna added. Flipkart is going to be a strategic part of Walmart’s e-commerce play this fiscal year as well. The world’s biggest company -- in terms of revenue -- claims to be on track to record $75 billion in global e-commerce by the end of this year on strong sales growth coming from India via Flipkart, Mexico and China. E-commerce net sales accounted for 19% of total net sales for <keyword id="6462687" type="UNKNOWN" weightage="20" keywordseo="Walmart-Inc-">Walmart Inc.</keyword>, in the last quarter. Though Walmart did not share any numbers related to Flipkart, the President and CEO Doug McMillon emphasised that the homegrown e-commerce platform has reported another good quarter with strong sales, improving trends in monthly active users and customers. “Our ecommerce marketplace in India, Flipkart, continues to drive strong growth in GMV [gross merchandise value], in line with our high expectations. This team has been busy... They're also increasing customer stickiness with Flipkart Plus. It's a tiered programme based on spend that helps us drive higher repeat rates. Customers and the programme transact more frequently, and we see lower churn than others,” McMillon said in the <a href="https://corporate.walmart.com/media-library/document/q2-fy22-investment-community-call-transcript/_proxyDocument?id=0000017b-5551-d7d1-a57b-ffd30a740000">earnings call</a> held on Tuesday. This quarter, Flipkart <a href="https://www.businessinsider.in/business/ecommerce/news/flipkart-raises-3-6-billion-at-a-valuation-of-over-37-billion/articleshow/84338594.cms">raised $3.6 billion</a> (approx. ₹26,800 crore at current rates) at a post-money valuation of $37.6 billion. The e-commerce giant’s valuation has more than doubled since Walmart acquired it for $16 billion in 2018. Walmart’s international net sales were down by 15% to $23 billion in the April-June quarter of 2021 due to divestitures (selling, exchanging or closing down assets). Its total revenue was at $141 billion, representing a 2.4% increase from the previous quarter. SEE ALSO <a href="https://www.businessinsider.in/retail/news/a-third-of-internet-users-would-be-actively-shopping-online-by-the-end-of-this-decade-offline-retail-to-take-a-back-seat/articleshow/85390712.cms" style="">A third of internet users would be actively shopping online by the end of this decade, offline retail to take a back seat</a> <a href="https://www.businessinsider.in/business/startups/news/with-pharmeasy-mobikwik-and-ixigo-all-set-to-hit-the-public-market-orios-plans-to-go-deeper-into-pre-ipo-bets/articleshow/85359703.cms" style="">With PharmEasy, MobiKwik and ixigo all set to hit the public market, Orios plans to go deeper into pre-IPO bets</a> <a href="https://www.businessinsider.in/business/auto/news/tamil-nadu-government-is-upset-about-losing-money-on-luxury-cars/articleshow/85322536.cms" style="">Tamil Nadu government is upset about losing money on luxury cars</a>

Walmart to prioritise Flipkart’s Diwali sale ‘Big Billion Days’

<ul><li>Data analytics services company <keyword id="12453933" type="General" weightage="20" keywordseo="latent-view-analytics-ipo" source="Orion">Latent View Analytics IPO</keyword> has opened today and will close on November 12.</li><li>The company is looking to raise ₹600 crore through public listing.</li><li>Analysts feel ,in future, there will be a great demand for pure play analytics companies, which are engaged in providing analytics services, offering an in-depth understanding of solving complex customer problems.</li></ul>While data analytics companies are new to stock investors, analysts feel there will be a huge demand for such services in future. The positive view for the analytics industry is good news for the initial public offering (IPO) of data analytics services company <keyword id="5165543" type="General" weightage="20" keywordseo="latent-view-analytics" source="Orion">Latent View Analytics</keyword> that opened today, November 10. Latent View Analytics is looking to raise ₹600 crore through the public listing of shares. The IPO comprises a fresh issue of ₹474 crore and an offer for sale of ₹126 crore by existing shareholders and promoters. Moreover, the strong grey market premium threw limelight on the IPO of Latent View Analytics as shares of the company were demanding a premium of over 100%, that is ₹230 per share. The 15-year old company provides analytics services such as data and analytics consulting, business analytics and insights, advanced predictive analytics, data engineering, and digital solutions. It provides services to blue-chip companies in technology, banking, financial services and insurance (BFSI), consumer packaged goods (CPG) companies and retail, industrials, and other industry domains. Adding to it, brokerage firms are also bullish on the analytics services industry as they see future demand for such services to solve complex customer problems. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage firm </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Choice Broking </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Securities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TopShareBrokers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Religare Broking </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Investmentz Research </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for long term </td></tr></tbody></table> “We feel in future there will be a great demand for pure play analytics company [sic] like Latent View, which is engaged in providing analytics services, offering an in-depth understanding of solving complex customer problems and assists business entities in making an informed decision. Thus considering the bright future and attractive valuations, we assign a “SUBSCRIBE” rating for the issue,” said Choice Broking in a report. Analysts recommend the IPO for long term investment as analytic services companies are here to stay. “We believe Latent View has distinctive product offerings, relevant experience and capabilities to manage customers which aid in driving the company’s revenue and operating efficiencies. On the financial front, the company’s performance is decent. From a long term perspective, we have a positive view on the company,” said analysts at Religare Broking. The global data and analytics market is expected to grow at a CAGR of 18% from $174 billion in FY20 to $332.6 billion by FY24, said analysts at Investmentz Research. “Across industries, data and analytics are being leveraged by enterprises to guide business strategy and optimize spending decisions. Latent View is among the leading pure-play data analytics services companies in India. We recommend to subscribe the issue from a long-term perspective,” said the broking firm. <div type="image" title="latent view" height="900" width="1200" msid="87622248" hostid="261"></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/paytm-ipo-subscription-day-2/articleshow/87608830.cms">Half of Paytm’s shares have been subscribed so far — today is the last day to subscribe</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/nykaa-starts-trading-at-2001-a-premium-of-77-87/articleshow/87618803.cms">Nykaa starts trading at ₹2,001, a premium of 77.87%</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/pharmeasy-files-draft-prospectus-for-its-6250-crore-ipo-no-existing-investors-selling-shares/articleshow/87618652.cms">PharmEasy files draft prospectus for its ₹6,250 crore IPO, no existing investors selling shares</a>

Analysts recommend subscribing to Latent View Analytics IPO on strong demand for data analytics

<ul><li>India saw 10 unicorns emerge in the first four months of 2021 as compared to 11 unicorns from the whole of 2020. </li><li>Venture capitalists and money managers in India say that this number might seem pretty small by the end of the year.</li><li>India may soon see more than 100 technology startups as unicorns, much before the 2025 target. </li></ul>India saw 10 unicorns emerge in the first four months of 2021 as compared to 11 unicorns from the whole of 2020. But the venture capitalists and money managers in India say that this number might seem pretty small by the end of the year. India currently has over 40 technology startups that are unicorns. Even after the 10 strong unicorns that have cropped up already, there are many more in the line – home services startup Urban Company, neo-bank Zeta, are among the many companies that are currently raising funds over a billion dollar valuation. Industry bodies like <keyword id="6372077" type="COMPANY" weightage="20" keywordseo="nasscom">NASSCOM</keyword>, <keyword id="137810" type="COMPANY" weightage="20" keywordseo="tie">TiE</keyword> have been bullish about the Indian startup ecosystem’s growth and believe the country is set to hit 100 unicorns by 2025. But we will be getting there much sooner. “In the next couple of years, we should hit 100 unicorns,” Lathika Pai, country head, venture capital and private equity partnerships at <keyword id="10387" type="COMPANY" weightage="20" keywordseo="Microsoft">Microsoft</keyword> said in a conversation with <keyword id="824043" type="COMPANY" weightage="20" keywordseo="Business-Insider">Business Insider</keyword>. And Haresh Chawla, partner at True North is even more enthusiastic. He said “I believe we will do 3X of last year, so over 30 unicorns in this year alone.” VCs are more than willing to bet on startups When the COVID-19 pandemic started, startups in India feared that VCs might hold on to their purses and think twice before investing. But with the digital acceleration and the boom of sectors like edtech, healthtech, fintech and more, all the fears have been kept away. In the first quarter of 2021 alone, India has seen $11.85 billion in private equity and venture capital funding. <div type="image" title="PE VC funding" msid="82097878" hostid="261"></div> Chawla believes that the COVID-19 pandemic has pushed the consumers’ willingness to pay and that distribution is no longer a challenge, which has brought in investor’s interest. “This has created a new landscape from 12 months ago. Many of these new companies at some level are going to profitably disrupt the market,” he said. Pai, who agrees that COVID-19 has been a boon to startups, gives us a snapshot of what’s happening in the VC zoom calls as they meet new companies. “It’s no longer vanity metrics that we are talking about, people are downloading, transacting. I know of a startup and the valuation they got right now was 20X from a year ago for their series A round. It’s phenomenal that the valuations have increased because the potential is now suddenly open more than ever,” she said. The unicorn rush And with the demand more than ever, valuations are justified. For Chawla, the unicorn tag does more than just make the founder and the investor happy. “If you were doing a deal at $800 million valuation, you would rather do it at $1.2 billion and call it a unicorn. This will signal to everyone that this company is now funded and competing with it will be difficult. Some bit of the froth is due to the competitive signalling,” he said. The number of unicorns being produced in India have more than doubled in the past few years. And it’s not a shocking factor anymore, especially when compared to markets like China and the US, which see crazy valuations and unicorns being produced every year. There are a total of over 650 unicorns in the world, with cumulative valuations hitting $2,173 billion. China and the US alone account for 80% of the world’s unicorns. In fact, China is also home to the world’s most valued unicorn – ByteDance, with a valuation of $140 billion. “Look at China, and the number of unicorns they produce every year. There’s a lot of money in the world. But on the other side, it speaks significantly of the depth of the Indian market. The market has grown significantly, GMV is growing, and that’s leading to companies becoming unicorns,” Rehan Yar Khan, managing partner at Orios Venture Partners told Business Insider. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/pharmeasy-investor-orios-ventures-shares-why-it-promises-to-invest-in-every-round-even-after-an-ipo/articleshow/82061415.cms" data-type="tilCustomLink">This VC firm invested in Pharmeasy when it was valued at just $10 million – here’s why it promises to invest in every round even after an IPO</a> <a href="https://www.businessinsider.in/business/startups/news/adar-poonawalla-serum-institute-of-india-has-bought-stake-policybazaar/articleshow/81985425.cms" data-type="tilCustomLink">Serum Institute of India buys into IPO-bound insurance unicorn PolicyBazaar, as True North sells part stake in secondary sale</a>

VCs say 10 unicorns in 4 months may seem too small by the end of this year

<ul><li>Relentless FII selling, initiation of a war between two countries and high inflation has sucked out investors’ risk appetite leading to people selling stocks across the globe in a panic.</li><li>All this has spoiled the market’s mood and their ability to put in fresh money even for their favourite initial public offering (IPOs).</li><li>More than 10 companies in India are in line to launch their public issues anytime soon.</li></ul>The Indian equity markets are witnessing one of the biggest crashes in history as Russia declares a war on Ukraine. Indian markets, on Thursday, wiped out $177 billion of investors' money as Sensex tumbled nearly 5%. All because Russian President Vladimir Putin announced a military operation in Ukraine despite the US and western countries insisting on imposing sanctions and indicating not to invade. Initiation of a war between the two countries seems to have sucked out investors’ risk appetite leading to people selling stocks across the globe in a panic. The Russia-Ukraine crisis added to the already reeling market worrying over high inflation and expectations of aggressive interest rate hike by the US Fed, which triggered losses in Indian markets as foreign institutional investors (FII) continued to scoop out their money from here for five straight months. All this has spoiled the market’s mood and risk appetite of investors to put in fresh money even for their favourite initial public offering (IPOs). It is true that the companies are delaying their IPO launches because of the weak market environment and the wave would only return if markets get a bit better, as per Ajay Saraf, head of investment banking and institutional equities at ICICI Securities. Here are some of the IPOs expected to come out soon <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Expected IPO size </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Life Insurance Corporation (LIC) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹70,000 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">OYO Rooms </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7,000 crore + shares by promoters </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Droom </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,000 crore + shares by promoters </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Delhivery </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5,000 crore + shares by promoters </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">PharmEasy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6,250 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">MobiKwik </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,900 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ixigo </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,600 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Go Airlines </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,600 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Arohan Financial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,800 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Penna Cement </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,550 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Utkarsh Small Finance Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,350 crore </td></tr></tbody></table>(Source: Angel One) Analysts believe that many IPOs are getting delayed because of following reasons -- geopolitical risk of <keyword id="9594427" type="General" weightage="20" keywordseo="russia-ukraine-war" source="Orion">Russia Ukraine war</keyword> looming, frequent selling by FIIs and weak market conditions and the upcoming mammoth IPP from LIC. Companies fear that IPOs won’t get a good response and remain undersubscribed, which may also lead to weak listing gains. “Companies that have filed for IPOs are delaying their procedures due to the upcoming massive LIC IPO. The timelines for LIC IPO have been informed well in advance and it is advised that companies avoid clashing with timings of LIC IPO, as it will create weak liquidity for other IPOs. Some managements have indicated they will be delaying their issues and waiting for the LIC IPO to get over, by not delaying there are chances that IPOs may be undersubscribed and give out weak listing gains,” said Manoj Dalmia, founder and director at Proficient Equities. So far in 2022, only three IPOs have been listed in India’s exchanges out of which two of them opened on a weak note. Further, it is noticeable that companies are in a wait-and-watch zone for market sentiment to get a bit better before they launch their IPOs. “The weak market sentiment has deferred listing of companies whose valuation may need to be reconsidered against the backdrop of sharp corrections in some recently listed stocks which were overvalued,” said Neha Khanna, director at ValPro. Vijay Chandok, managing director and chief executive at ICICI Securities believes that crude oil trajectory also will be a key factor to watch out for, going ahead. “We don’t expect major sanctions which may drive [a] big spike in crude, equally harming Europe and US, or even in terms of aggressive rate hike leading to slower economic growth. We, thus, believe that market stabilisation is likely in the short term,” said Chandok. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/what-is-the-role-of-nato-in-the-russia-ukraine-conflict/articleshow/89802216.cms">EXPLAINED: The role of NATO in the Russia-Ukraine conflict</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/investment/news/russia-ukraine-conflict-wipes-over-200-billion-from-crypto-markets-cardano-avalanche-and-polkadot-worst-hit/articleshow/89804413.cms">Russia-Ukraine conflict wipes over $200 billion from crypto markets — Cardano, Avalanche, and Polkadot worst hit</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/taiwan-seems-jittery-amidst-the-russia-ukraine-conflictheres-why/articleshow/89796361.cms">Taiwan seems jittery amidst the Russia-Ukraine conflict—Here’s why</a>

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