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Tag: initial public offering

  • PhonePe Selects Four Banks for IPO, Aiming for Valuation of Up to $15 Billion

    PhonePe, owned by Walmart, has selected four investment banks as advisors as India’s leading digital payments platform aims to enter the domestic tech IPO sector, targeting a valuation of up to $15 billion. As per a media report, PhonePe plans to initiate the IPO process in the first week of March and has engaged Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley. Additional advisors may be incorporated at a subsequent phase if necessary.

    A media report corroborated this information and indicated that the IPO would likely consist of both main and secondary share issuances, with the listing anticipated in FY26. During a kick-off meeting, the issuing firm outlines essential strategies and the timeline for the IPO, as well as delineates the roles and responsibilities of the assembled advisors.

    The media report indicates that this is anticipated to be a significant tech IPO from a market leader, with the issue size projected to exceed one billion dollars. These are preliminary stages, and the plans may evolve based on market conditions; nonetheless, currently, the firm intends to forgo potential profits for investors and is targeting a valuation of up to $15 billion.

    Major Investors in PhonePe

    The company stated in its FY24 annual report that PhonePe has garnered an impressive array of distinguished investors, who have collectively invested over INR 18,000 crore in the organisation to date. Walmart holds the largest holding, with additional investors including Microsoft, General Atlantic, Tiger Global, Ribbit Capital, TVS Capital, Tencent, and the Qatar Investment Authority. Notably, the share price of the publicly traded fintech counterpart One 97 Communications Limited, which owns and operates the Paytm brand, has increased by 72.28% during the past year.

    Strategy to go Public

    On February 20, PhonePe announced the initiation of preparatory measures for a prospective initial public offering (IPO) to be listed on Indian exchanges. Doug McMillon, CEO of Walmart, announced that PhonePe, Walmart’s fintech subsidiary, is preparing for an IPO in India. PhonePe’s staff has long desired to become a public company, and Walmart is enthusiastic about initiating these preliminary steps. PhonePe re-established its domicile from Singapore to India in December 2022. The corporation announced the establishment of a definitive corporate structure, designating each of its new non-payment enterprises as wholly owned subsidiaries.

    The company stated that PhonePe’s robust revenue and profit development throughout its varied business portfolio, as outlined in its FY23-24 annual report, renders this an opportune moment to initiate preparations for a public offering. Located in Bengaluru PhonePe is the preeminent digital payments entity in the country, commanding approximately 48 percent of the market share in the Unified Payments Interface (UPI), a real-time mobile payments platform operated by the National Payments Corporation of India (NPCI). Google Pay has the position of the second largest competitor, commanding a market share of approximately 37 percent.

    The NPCI previously specified that no single non-bank third-party application may possess more than 30 percent of the market share, aiming to foster competition and mitigate the duopoly situation.

    Nevertheless, the organisation had to prolong the deadline twice, extending it by two years to prevent discomfort to customers. The RBI said in a circular on December 31 that, taking into account various variables, the deadline for compliance of current TPAPs exceeding the volume cap is extended by two years, till December 31, 2026.

    Walmart-Owned PhonePe Prepares for India IPO
    Walmart-owned PhonePe is preparing for its IPO in India, aiming to strengthen its market presence and expand its financial services portfolio.
    StartupTalkyNitin Konde

  • Licious, Supported by Temasek, Plans to go Public in India for $2 Billion

    As it gets ready to go public in 2026, Licious, an online meat and seafood vendor in India supported by Temasek Holdings Pte, is looking to turn a profit and join a number of consumer-focused businesses vying for market share in the nation.

    To compete with rapid commerce rivals, Delightful Gourmet Pvt., the company that runs Licious, is expanding its physical shopfronts, increasing delivery times, and hoping to turn a profit at the Ebitda level by August, according to CEO and co-founder Vivek Gupta. Earnings before interest, taxes, depreciation, and amortisation are referred to as EBITDA. In an interview, Gupta stated that the brand aims to be ready for an initial public offering (IPO) within a year.

    The Bengaluru-based company is aiming for a listing valuation of more than $2 billion. According to statistics from Tracxn Technologies Ltd., Avendus Capital Pvt. and Kotak Investment Advisors are among the investors in Licious, which was valued at $1.5 billion in its most recent funding round in 2023. After a record-breaking year for listings in 2024, when local companies raised over $20 billion, making it the second-busiest market in the world after the US, Licious, which was launched in 2015, is the newest company to enter the Indian initial public offering (IPO) market.

    Licious Betting on Smartphone-Savvy Population

    Almost 75% of India’s 1.4 billion people eat meat, fish, or poultry, the majority of which they purchase from small businesses. Licious is placing a wager on India’s increasingly well-off and tech-savvy populace, who are prepared to spend more to stay indoors. According to statistics provider Statista, the meat market in India was valued at $26 billion, while the fish and seafood market is expected to generate $59 billion year. With locations in 20 Indian towns, Licious offers a variety of cuts of fish and other shellfish, chicken and goat meat, spice mixes, spreads, and prepared foods.

    According to Hanjura, the company intends to utilise the IPO money to buy smaller offline businesses and expand throughout India’s extremely disorganised meat and fish market. Additionally, the listing will provide an exit chance for some of its investors. Licious promises consumers an average delivery time of 90 minutes, but as it competes with fast commerce rivals like Zomato Ltd. and Swiggy Ltd., it is pushing towards 30-minute deliveries. According to Gupta, the business has already begun making speedy deliveries in Gurugram, a satellite city outside of New Delhi, and plans to expand to the majority of Licious’ markets by June.

    How the Brand is Planning its Future Business Operations?

    Sales growth at Licious, which derives around one-fifth of its revenue from 10-minute delivery apps like Zomato and Swiggy, has slowed from peak levels during the pandemic. It is struggling with a slower migration to online meat purchases in smaller towns and a wider consumption slack in India’s major centres. Peers including Amazon.com Inc.-backed FreshtoHome and Zepto, a rapid commerce business with its own meat brand Relish, are also vying for a bigger share of this industry. In addition to additional products like momos—Tibetan-style dumplings that are popular in India—Licious plans to offer more marinated dishes that are ready to cook. For the more conventional meat eaters who might like to choose their own cuts, it plans to expand from its current three locations to 50 by March 2026. Last year, it purchased My Chicken and More, a 22-store retailer based in Bengaluru.

    Lenskart Targets $10 Billion Valuation for Upcoming IPO
    Lenskart is intensifying efforts to achieve a $10 billion valuation for its IPO, positioning itself as a major player in the eyewear industry.
    StartupTalkyNitin Konde

  • Lenskart Intensifies its Focus on its $10 billion IPO valuation

    According to those briefed on the subject, Lenskart is contemplating a possible $10 billion valuation for its impending initial public offering (IPO), which is quadruple that of its most recent investment round. According to the omnichannel eyeglasses store, the brand is planning to file draft papers in May. In recent weeks, Peyush Bansal, the CEO, and important investors spoke with the bankers overseeing the $1 billion IPO about valuation. However, the plans depend on the state of the market as the IPO approaches.

    According to a media report, efforts are being made to submit the draft red herring prospectus (DRHP) by May in order for it to be listed this year. Internally, some people feel even more aggressive about the valuation, but one must leave money on the table for potential IPO investors, and that may not be in line with the state of the market. Over the past year, investors had been considering accessing the public markets due to Lenskart’s size and profitability, but Bansal had not finalised those plans. Rather, over the past two years, investors have been able to part-sell holdings for liquidity through high-profile secondary sales.

    In contrast to a previous round of primary capital infusion of $4.5 billion, Lenskart closed a $200 million secondary round in June of last year at a $5 billion valuation. Secondaries usually occur at a discount, but both new and existing investors have been clamouring for Lenskart shares.

    Recent Developments at Lenskart

    Prior to the IPO, Lenskart has been striving for complete profitability through a significant decrease in losses and consistent sales growth. Due to technology-driven operational savings, net loss decreased from INR 64 crore in FY23 to INR 10 crore in FY24. As per quoted by a media report, “They (Lenskart) rely and leverage a lot from technology, which leads to operational efficiency in an omnichannel model.”

    In FY24, operating revenue increased 43% year over year to INR 5,428 crore. From INR 403 crore in FY23 to INR 856 crore in FY24, EBITDA more than doubled. Bansal stated in an interview last year that the success of its activities was demonstrated by the net promoter score, a crucial measure of consumer happiness, which increased from 65 in previous years to over 80. “Whether it’s enhancing the customer experience, streamlining the supply chain, or cutting down on delivery times, technology is at the core of everything we do,” he had stated.

    Lenskart is increasing its retail network and concentrating more on domestic manufacture. Its factory in Rajasthan now handles the majority of the manufacturing. The business is investing $200 million in a new Telangana facility. This will lower expenses and boost its export operations to India. The company intends to add 400 stores to its 2,500-strong brick-and-mortar network, despite the fact that internet sales have surpassed offline growth in the last two years.

    Joining the IPO Race

    This year, a number of fintech, business-to-business (B2B), and e-commerce startups have planned filings. Ather Energy, Zetwerk, Groww, Bluestone, PharmEasy, Oyo, and Zepto are a few companies at varying phases of IPO preparation. Despite bankers’ optimism, companies will price their products according to the state of the market when they go public, especially if they haven’t turned a profit yet, as was the case last year.

    Shein Delays IPO to H2 After US ‘De Minimis’ Repeal
    Shein’s IPO is postponed to the second half of the year following the US ‘de minimis’ repeal, impacting its supply chain and business strategy.
    StartupTalkyNitin Konde

  • Before its IPO, OfBusiness Becomes a Public Company

    B2B marketplace unicorn OfBusiness has taken another step towards becoming a public business in anticipation of its initial public offering (IPO). On January 27, the board of OfBusiness approved a resolution to convert the company from a private to a public entity. According to the company’s regulatory papers, OfBusiness changed its name from OFB Tech Private Limited to OFB Tech Limited after receiving board approval.

    This comes after rumours circulated that OfBusiness intended to launch its $750 million to $1 billion initial public offering (IPO) in the second half of 2025. According to reports, it is aiming for an IPO valuation of $6 billion to $9 billion. Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain founded OfBusiness in 2016. Through its platform, the company offers financing and raw material procurement services to SMEs in the manufacturing and infrastructure industries.

    It assists clients in obtaining raw materials for the construction and infrastructure industries, as well as metals, chemicals, polymers, agri-commodities, and petrochemicals. At a valuation of $5 billion, OfBusiness last secured $325 million from investors such as Tiger Global, Softbank, and Alpha Wave Ventures II in December 2021. To date, it has raised around $878 million in total capital.

    OfBusiness’ IPO Preparations

    According to reports, OfBusiness has chosen five bankers to oversee its first public offering (IPO): Axis Capital, Morgan Stanley, JPMorgan, Citigroup, and Bank of America. A $200 million new issue of shares will be part of its public offering, with the remaining shares being offered for sale (OFS). In the fiscal year 2023-24 (FY24), the company claimed a 30% increase in net profit from INR 463.2 Cr to INR 603 Cr.

    From INR 15,342.6 Cr in FY23 to INR 19,296.3 Cr in the year under review, operating revenue increased by more than 25%. Oxyzo Financial Services, the fintech division of OfBusiness that offers SMEs cash flow-based finance for the purchase of raw materials, is also aiming to go public. Over 70% of Oxyzo is owned by OfBusiness.

    More Companies Opting for IPO this Year               

    In 2025, more than 20 cutting-edge tech companies are considering going public amid the surge in startup IPOs. Among the firms hoping to debut on Dalal Street this year are ArisInfra, Ather Energy, BlueStone, Smartworks, and Razorpay.  Additionally, Lenskart, Groww, Zepto, and Pine Labs are preparing for their first public offerings.

    Prior to its eventual public listing, Zepto, a Singapore-based firm focused on fast commerce, reverse-flipped to India earlier this month. Companies including Razorpay, Mensa Brands, Udaan, and Eriditus are also considering a “desh wapsi” in an attempt to profit from the nation’s burgeoning startup scene and rekindled investor interest in cutting-edge digital equities.

    Droom to File INR 1,000 Cr IPO Draft by June
    Droom is set to file draft documents for its INR 1,000 crore IPO by June 2024, marking a major step toward its public listing and future growth.
    StartupTalkyNitin Konde

  • Shiprocket Becomes a Public Company in Preparation for its 2025 IPO

    With plans to go public in the upcoming fiscal year, the board of logistics unicorn Shiprocket has approved a resolution to turn the startup from a private to a public business. According to the company’s regulatory filings, the startup will now rename itself Shiprocket Limited and remove the word “private” from its name. At the Shiprocket general body meeting on January 18, this decision was made. After the company passed a special resolution at an extraordinary general meeting on August 31, 2024, its authorised share capital was INR 70.98 lakh.

    Through its initial public offering (IPO), which will comprise both core components and an offer for sale (OFS), Shiprocket is allegedly planning to raise between INR 2,000 and 2,500 crore. The company has hired Axis Capital, Kotak Mahindra, JM Financial, and BofA Securities as its investment bankers for the sale, according to media sources.

    Shiprocket Up for $26 Mn Funding Round

    This recent development coincides with the startup’s fundraising round, which will be headed by US-based venture capital company KDT Ventures and raise INR 219 Cr, or around $26 million. Tribe Capital, SAI Global, Huddle Ventures, and Japan-based MUFG Bank are also anticipated to participate in the financing. The company will offer 50,461 Series E3 compulsorily convertible preference shares (CCPS) to investors at an issue price of INR 43,394 each as part of its fundraising effort. Saahil Goel, Vishesh Khurana, Akshay Gulati, and Gautam Kapoor founded Shiprocket in 2017 with the goal of aggregating third-party logistics firms. In addition to Delhivery, FedEx, Aramex, Xpressbees, DTDC, and Shadowfax, the firm has 17 courier partners. It states that it provides shipping options for more than 24,000 PIN codes in India and 220 other countries.

    Shiprocket is worth $1.21 billion and has raised more than $320 million so far. Bertelsmann Nederland B.V. is the biggest external stakeholder, followed by Tribe, according to the startup data intelligence platform TheKredible. Notable investors in Shiprocket include Temasek, Paypal, LightRock, and Zomato.

    The company’s revenue increased by 21% year over year to INR 1,316 crore in the fiscal year that ended in March 2024, but its losses for the same period were INR 595 crore. Along with other companies like Shipyard, it is in competition with Unicommerce.

    Shiprocket’s Business Operations

    The business launched a D2C marketplace called Zop in August 2024. About 200–300 brands in eight categories, such as technology, fashion, and beauty, are featured on the platform. In terms of money, the startup’s FY24 net loss was INR 595 Cr, up 74.4% from FY23’s INR 341 Cr. From INR 1,089 Cr in the prior fiscal year to INR 1,316 Cr in the year under review, its operating revenue increased by 20.8%.

    Everstone Acquires Bootstrapped SaaS Leader Wingify for $200 Million
    Everstone acquires bootstrapped SaaS leader Wingify in a $200 million deal, marking a significant milestone in the SaaS industry.
    StartupTalkyNitin Konde

  • Innoviti Allots New ESOPs Worth INR 25 Cr and Plans to Go Public in 12 Months

    Innoviti, a provider of digital payment solutions, appears to have postponed its initial public offering (IPO) and is now aiming to list on stock exchanges within the next 12 months. Rajeev Agrawal, the company’s founder and CEO, stated in a statement that Innoviti aims to achieve operating profitability within the next two quarters. According to him, the company has started the IPO planning process with the goal of listing within the next 12 months and plans to achieve operating profitability within the next two quarters. Notably, Innoviti stated in August of last year that it intended to launch on the market within the following 12 months.

    In the meantime, the business has granted 110 employees additional ESOPs totalling INR 25 Cr in the lead-up to the IPO. As a result, Innoviti currently has INR 106 Cr in the entire ESOP pool. The new grants range from INR 3 Cr to INR 1 Lakh, according to the company’s announcement. Additionally, according to Innoviti, 50% of the new ESOPs have been awarded to specific employees for their “outstanding contributions,” with the other 50% going to individuals who have worked for the company for more than a year. According to Agrawal, throughout the “last few quarters,” the financial SaaS company had a 58% decrease in EBITDA loss and a 67% increase in sales.

    Company’s Operations and Financial Outlook

    According to the company, it is now making less than INR 8 Cr in annualised EBITDA loss and operating at an annualised run rate (ARR) of INR 160 Cr. Additionally, Innoviti reported that last year saw an annualised growth rate of 192% for their sales negotiating software, “Innoviti Genie,” which is targeted at electronics shops. The business also announced that their enterprise payments software, “Innoviti Unipay,” had a 28% EBITDA and a 15% annualised growth over the previous year. The startup, which Agrawal founded in 2002, lets retailers take payments and incorporate real-time sales data into important business operations. It states that it processes more than 20,000 merchants and more than 2,000 Indian cities’ worth of purchases per year, totalling more than INR 80,000 Cr.

    Funding Rounds

    Innoviti obtained a Reserve Bank of India (RBI) internet payment aggregator (PA) license in March 2024 to run its PA, “Innoviti Link.” The business declared in August 2024 that its Series E investment round has closed at INR 70 Cr. Innoviti has attracted more than $100 million in capital so far, including support from Bessemer Venture Partners, FMO, and Catamaran Ventures, among others. During the fiscal year 2022–2023 (FY23), it reported operating revenue of INR 110.2 Cr and a loss of INR 86.56 Cr.

    Paytm Expands ESOP Pool with 2.03 Lakh New Stock Options
    Paytm enhances its ESOP pool by adding 2.03 lakh stock options, reinforcing its commitment to employee rewards and growth.
    StartupTalkyNitin Konde

  • By March or April, Zepto will Submit its IPO Draft Documents

    According to a media outlet, Zepto, a quick commerce platform, is expected to submit its initial public offering (IPO) draft papers in March or April of this year. The delivery company has already obtained the necessary authorisations to relocate its headquarters from Singapore to India.

    The business stated that the IPO’s specifics are still being finalised and that it has scheduled a board meeting for January 19 to talk about the size of the IPO, the selection of independent directors, which bankers to hire, and other specifics.

    Notably, the National Company Law Tribunal (NCLT) is set to hear the case on January 17 even though Singaporean officials have approved the move. After food delivery services Zomato (Blinkit) and Swiggy (Instamart), parent firms of listed competitors, Zepto will become the first rapid commerce start-up to go public if all goes as planned by April.

    Zepto Marketplace Reshaping the B2B Model

    In order to shift its business-to-business (B2B) activities to a marketplace model, Zepto has created a new company called Zepto Marketplace. After the operational and regulatory details are resolved, Zepto Marketplace, which was registered in October 2024, will soon transition to the new format, according to sources. According to media reports, the change would give Zepto more control over service and quality assurance. Zepto plans to further improve operations by launching “Thor,” a SaaS inventory management platform, soon. Marketplace models are already used by Zepto’s competitors, such as Blinkit and Swiggy Instamart.

    Current Business Model of Zepto

    Geddit Convenience, Drogheria Sellers, and Commodum Groceries are the three businesses to which Zepto licenses its brand name and business operations under the current arrangement. These three businesses use the Zepto platform to sell to final customers after buying their merchandise from Kiranakart Technologies Pvt Ltd.

    Kiranakart Technologies is essentially a business-to-business (B2B) company that sources and purchases goods directly from brands and resells them to Zepto’s three licensee businesses. These businesses subsequently sell to final customers. The three businesses pay Zepto a licensing fee for each sale they make through the latter’s platform.

    According to sources, Zepto has already added additional sellers and plans to continue growing its seller and distribution base with the assistance of the new organisation. It also plans to lessen its focus on the three businesses (Geddit Convenience, Drogheria Sellers, and Commodum Groceries). Other than Geddit Convenience, Drogheria Sellers, and Commodum Groceries, more sellers are probably going to start selling on the Zepto platform in the upcoming months.

    In FY24, Zepto’s operating revenue increased by 120% to INR 4,454 crore. Additionally, the business plans to release a distinct app for Zepto Cafe, which offers speedy food delivery services for snacks and other things.

    Zepto Streamlines Structure with New Marketplace Entity Ahead of IPO
    Zepto simplifies its structure by introducing a new marketplace entity, streamlining operations ahead of its IPO. Learn about this strategic move.
    StartupTalkyNitin Konde

  • Investor Reduces PharmEasy’s Valuation to $456 Million

    Online pharmacy PharmEasy’s worth has fallen to about $456 million, a sharp 92% decrease from its previous peak of $5.6 billion. Additionally, the company’s worth has dropped by 18.57% since its latest fundraising in April, when it was valued at about $560 million. A renowned media house was the first to disclose this huge decline, quoting Janus Henderson, an investor in PharmEasy, who stated that his 12.9 million shares are now worth just over $0.76 million, which is less than the $9.4 million he originally invested.

    The move follows the company’s earlier this year acquisition of more than $216 million in new funding. The company was valued at about $560 million at the time of the financing round, which was undertaken at a 90% valuation drop from its peak. Furthermore, PharmEasy’s present valuation appears to be much lower than the $600 million it paid to purchase the diagnostic lab chain Thyrocare in 2021.

    The Root Cause of the Decline

    After delaying a $843 million initial public offering (IPO) that was planned for 2021, PharmEasy‘s financial issues became apparent. After that, the business was under more and more pressure to control its debts, including a $300 million loan from Goldman Sachs that was challenging to pay back in a tighter market. PharmEasy responded to these difficulties by launching a rights offering and generating $417 million to pay off its debt and ease its financial strain. Notably, this rights offering gave current shareholders the opportunity to buy shares at a reduced price, which may dilute ownership for non-participants.

    In 2023, Neuberger Berman was another investor to lower the value of their PharmEasy assets, bringing the company’s valuation down by 21% to $4.4 billion. PharmEasy was founded in 2015 by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia. Its main online platform distributes medications, and its subsidiaries provide diagnostic services.

    Recent Developments in PharmEasy

    Due to a decrease in operating expenses and unusual items, the epharma company’s consolidated net loss in the fiscal year 2023–24 (FY24) was cut in half, reaching INR 2,531.1 Cr. In FY23, the company’s net loss was INR 5,202.5 Cr, a 51.35% decrease. Its operating revenue did, however, also decline. From INR 6,643.9 Cr in FY23 to INR 5,664.2 Cr in FY24, PharmEasy’s operating revenue decreased by 14.75%. This is the main reason why PharmEasy has recently seen a number of changes.

    On August 16, 2024, ArisInfra Solutions, supported by the CEO of PharmEasy, submitted draft papers for an INR 600 Cr IPO, demonstrating continued efforts to generate money in the healthcare industry. Thyrocare, which is owned by PharmEasy, also revealed ambitions to extend its operations in northern India by purchasing Polo Labs’ pathology testing division.

    Peak XV Sells INR 82 Crore Worth of MobiKwik Shares
    Peak XV offloads shares worth INR 82 crore in MobiKwik, signaling a strategic move in its investment portfolio. Learn about the impact on MobiKwik’s valuation.
    StartupTalkyNitin Konde

  • PhysicsWallah Becomes a Public Company in Preparation for its 2025 IPO

    PhysicsWallah, a prominent Edtech startup, has gone public in anticipation of its 2025 initial public offering (IPO). A resolution to rename the edtech unicorn from PhysicsWallah Private Limited to PhysicsWallah Limited, a public business, was passed by the board earlier this month. In a regulatory filing, the company stated, “… the board of directors of the company be and is hereby accorded to change the name of the company from “PHYSICSWALLAH PRIVATE LIMITED” to “PHYSICSWALLAH LIMITED” by removing the word “Private” before the word “Limited” from the company’s name and amending the name clause of the company’s memorandum of association as well as all other papers, documents, and matters created to give effect to the changed name accordingly.” According to the prominent edtech company, it intends to issue its equity shares on “one or more stock exchanges.”

    Preparation for the Upcoming IPO

    Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan were announced earlier this year as the company’s chosen bankers for its anticipated $400 million to $500 million initial public offering (IPO) next year. Notably, at a valuation of $2.8 billion, the edtech giant raised $210 million in its Series B fundraising round headed by Hornbill Capital in September of this year. The round also included participation from Lightspeed Venture Partners and current investors WestBridge Capital and GSV Venture. After obtaining a $100 million funding round from Westbridge and GSV Ventures at a valuation of $1.1 billion, PhysicsWallah became a unicorn in 2022. Since then, it has acquired other businesses and entered the offline market to broaden its product offerings. Alakh Pandey and Prateek Maheshwari founded the business in 2020, and it now has hybrid and offline locations in over 105 Indian cities.

    What PhysicsWallah Offers?

    Two Gurukulam Schools, test preparation in forty-three categories, a skilling vertical, and verticals for higher education and study abroad are just a few of the educational segments that PhysicsWallah offers. Additionally, it asserts that its 112 YouTube channels in five vernacular languages provide free education to more than 4.6 Cr students. The net loss for PhysicsWallah increased from INR 84.06 Cr in FY23 to INR 1,131.2 Cr in FY24, the fiscal year that ended in March 2024. In FY24, operating revenue climbed 2.6 times to INR 1,940.4 Cr from INR 744.3 Cr the year before.

    Amit Sachdeva, a former CFO at Blinkit, was appointed as the new chief financial officer of Physics Wallah (PW) last month. Sachdeva will oversee the company’s finance and strategic activities as the Noida-based edtech startup prepares for its initial public offering (IPO). According to a release, PhysicsWallah hopes to further its objective of offering high-quality education, promote sustainable growth, and improve its financial management and planning under his direction.

    SEBI Tightens Rules for SME IPOs to Protect Investors
    SEBI introduces stricter rules for SME IPOs, aiming to enhance investor protection and ensure higher transparency in small and medium enterprise listings.
    StartupTalkyNitin Konde

  • Mobikwik IPO to Open Today

    On December 11, 2024, One Mobikwik Systems Limited is scheduled to make its much-anticipated initial public offering (IPO) to the Indian primary market. According to sources, shares of fintech giant MobiKwik are trading almost 40% higher on the grey market from the upper end of the price range of INR 265 to INR 279 ahead of the start of the company’s initial public offering (IPO). On December 8, MobiKwik shares were trading at INR 391 per, according to Investor Gain. On December 11 and 13, the company’s first public offering (IPO) will open and close. Brokers’ optimistic assessments of the IPO may have contributed to the price spike in the grey market. With a long-term outlook, Bajaj Broking advised investors to subscribe to MobiKwik’s IPO. According to the brokerage’s IPO note, MobiKwik intends to expand its operations into other markets, which could increase its earnings in the upcoming years.

    Reducing IPO Size

    Additionally, Kotak Securities has praised the company’s decision to reduce the size of the IPO, stating that it is an appealing investment opportunity. The smaller IPO size and targeted funding allocation show strategic intent. According to Kotak, if handled carefully, the IPO could position MobiKwik as a pioneer in defining the direction of digital finance. In an attempt to raise INR 572 Cr, MobiKwik submitted their red herring prospectus last week. It had previously been approved by market watchdog SEBI to raise INR 700 Cr through its initial public offering. Only a new issue of shares is included in the public offering. Additionally, the business reduced its 2021 valuation of roughly $1.5 billion to $1.7 billion to about $255 million for its IPO.

    Current Financial Situation of MobiKwik

    According to Bipin Preet Singh, the founder and CEO of MobiKwik, it is disheartening for investors when an initial public offering (IPO) with a high value underperforms after listing. People think they are horrible companies that spend a lot of money, but someone needs to change that. “We don’t mind if it means receiving a lower valuation,” he stated. MobiKwik, on the other hand, turned a profit in FY24 but went into the red in the first quarter of 2024–25 (Q1 FY25). Compared to a net profit of INR 3 Cr in the same quarter last year, it reported a net loss of INR 6.6 Cr in Q1 FY25. During the reviewed quarter, operating revenue was INR 342.2 Cr. Compared to the previous fiscal year’s net loss of INR 83.19 Cr, MobiKwik reported a net profit of INR 14.1 Cr in FY24. Operating revenue increased from INR 539.5 Cr in FY23 to INR 875 Cr, a 62% increase.

    Lenskart Plans Largest Eyewear Production Plant in Telangana
    Lenskart plans to build its largest eyewear production plant in Telangana, aiming to enhance manufacturing capacity and meet growing demand.
    StartupTalkyNitin Konde