Chennai: As several tech start-ups are preparing themselves for Initial Public Offering, Indian stock exchanges are likely to witness around 250 listings in the next 10 years. The total market cap of listed new-age stocks in India is also poised to skyrocket to $1 trillion by 2033.
According to the report by Redseer Consultancy, the publicly listed new-age companies, encompassing internet retail, fintech, SaaS, and other sectors, are set to escalate their market cap tenfold over the next decade. This monumental growth signifies more than mere numbers; it’s a testament to the maturing Indian internet economy and its burgeoning global relevance.
While US tech firms have already cemented their dominance with over $10 trillion in value, the Indian tech landscape is still in its formative stages. Currently, Indian tech start-ups, with leading names like Zomato, Nykaa, and Paytm, represent a mere 1 per cent of the total market cap. Recently, Mobikwik and Unicommerce have filed their Draft Red Herring Prospectus. This contrast highlights the immense growth potential of the Indian tech sector
Looking ahead, the report predicts over 250 new-age listings between 2024 and 2033, a sign of growing confidence in the tech sector. Till 2028, the market could see up to 120 listings and the rest would come in the next five years. These listings are expected to be dominated by consumption-driven goods, fintech, and SaaS. The surge reflects a broader shift in market dynamics and investor confidence in Indian tech start-ups.
A significant trend towards profitability has boosted investor sentiment towards IPOs. Cumulative losses in the industry have reduced considerably, indicating a healthier foundation for future listings. However, it also points out the challenges in achieving and maintaining profitability, a crucial factor for the success of IPOs.
The path to a successful IPO is fraught with challenges as only one in three new-age listing initiatives succeed on the first attempt. Factors contributing to failures include inefficient processes, questionable fundamentals, and volatile market conditions. This finding underscores the need for robust strategies and meticulous planning in the IPO process.
