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Tag: IPO bankers

  • Morgan Stanley and Two Other Bankers are Chosen by Meesho as IPO Plans are Fully Underway

    E-commerce giant Meesho is reportedly stepping up its efforts to go public later this year and intends to raise $1 billion through an initial public offering (IPO). According to a media report, the company has already selected Morgan Stanley, Kotak Mahindra Capital, and Citi as advisers for its initial public offering (IPO). Although Meesho wants to fund $1 billion, bankers have offered a $10 billion valuation. According to the media source, if negotiations are successful, even JP Morgan is probably going to be included in the IPO syndicate. Meesho will file its draft filings during the next few weeks, according to a number of media reports.

    Recent Financial Developments of Meesho

    Nearly two months have passed since the online shopping giant raised an additional $250 million to $270 million from investors Tiger Global, Think Investments, and Mars Growth Capital, bringing the total amount of its investment round to roughly $550 million. As per the media reports, the deal would have valued Meesho at roughly $3.9–4 billion, a 20% drop from its previous estimate of $4.9 billion. Meesho’s backer Prosus first disclosed that Meesho is one of the possible companies to be listed on the bourses in 18 months in its investor presentation of H1 FY25 in December of last year. According to reports, the business has also applied to the National Company Law Tribunal (NCLT) in Bengaluru to move its headquarters to its Indian subsidiary, Fashnear Technologies. This will pave the way for its future intentions to go public on the stock exchanges.

    Meesho to Migrate from US to India

    Before moving forward with the IPO proposal, Meesho must first relocate its headquarters from Delaware, in the United States, to India. The procedure is well underway, and Meesho is expected to pay about $300 million in taxes related to the reverse merger. As businesses develop ambitious growth plans that will reward new investors, Meesho will then join a list of expanding Indian startups like PhysicsWallah (PW), Ather, and Lenskart that are vying for a valuation that is much higher than what they were able to secure during their private market fundraises. In order to leave some value for potential new investors, both retail and institutional, some new-age companies, like Ola Electric, MobiKwik, and Firstcry, went public at a valuation lower than what they had originally determined or at a discount when compared to their most recent private market fundraising.

    Even though Meesho entered the e-commerce market late in 2015, it has expanded in size and scope and enhanced its profitability profile in spite of facing off against well-funded competitors like Amazon and Walmart’s Flipkart. Although Flipkart leads the Indian e-commerce business, Meesho has become well-known and significantly increased its market share over time by concentrating on Tier 3 and beyond locations or consumers who are cost-conscious. Revenues for the company rose from INR 3,240 crore in FY22 to INR 5,735 crore in FY23 and then to INR 7,615 crore in FY24. In FY24, the net loss decreased from INR 3,248 crore in FY22 to INR 305 crore.

  • Info Edge-Backed NoPaperForms Appoints Bankers and Starts the IPO Process

    For its impending initial public offering (IPO), NoPaperForms has hired two investment bankers. The company offers SaaS-based enrolment automation solutions under the Meritto name, has hired two investment bankers. According to a media report, which cited people familiar with the situation, the Naveen Goyal-led business has chosen IIFL Capital and SBI Capital for its initial public offering (IPO), which is anticipated to cost between INR 500 Cr and INR 600 Cr. By the end of this year, the Gurugram-based business intends to launch on the stock market. According to the report, the company is looking for a valuation of INR 2,000 Cr and may submit draft IPO papers in the upcoming months. In the midst of the IPO preparations, Info Edge, the company’s current investor, is unlikely to sell its shares in the business.

    How NoPaperForms Operate?

    NoPaperForms was established in 2017 by Goyal and Suraj Sapra to assist edtech companies in streamlining their student enrolment and money-collecting processes. Meritto and Collexo are the company’s two main products. Organisations can access solutions related to the recruitment and enrolment of students under Meritto. Enrolment cloud, education CRM, application and post-application process management, including group discussions and in-person interviews, fee collecting, and a live chat platform are just a few of the services provided by this product arm. Conversely, Collexo provides finance and payment solutions for the education industry. Among the services it provides are automated fee collection, student EMI options, automatic fee deduction on due dates, and more.

    More than 1200 academic institutions, including Manipal University, Shiv Nadar University, Narsee Monjee Institute of Management Studies, and PhysicsWallah, are reportedly served by NoPaperForms. Notably, the business last year extended its offerings in Malaysia and the United Arab Emirates.

    Roller-Coaster Ride for India’s Edtech Sector

    In recent years, there have been challenges in India’s edtech industry. BYJU’s is a well-known illustration of how offline institutions dominate the education market and how startups are fighting for survival. A bright spot for the edtech sector, however, is PhysicsWallah, which plans to go public by the end of 2025. The edtech giant transformed into a public company in December of last year in anticipation of its $400–$500 million initial public offering. Additionally, the business has chosen investment bankers to oversee its public offering.

    Indian startups Opting For IPO

    According to a survey by venture debt firm InnoVen Capital, despite global obstacles, a number of high-quality startup companies are expected to go public in 2025, and the funding environment is also expected to improve this year. Additionally, it stated that 47% of the 100 startup entrepreneurs who took part in the study anticipate hiring to pick up speed this year. According to the India Startup Outlook Report, 63% of people who tried to raise money in 2024 had a positive experience. Seventy-nine percent of founders believe that by 2025, the fundraising climate will improve. According to the report, 73% of startup founders now choose domestic initial public offerings (IPOs) as their preferred exit strategy, up from 64% in 2023. According to the report, 28% of respondents think AI would significantly affect their business models over the next two to three years, mainly in the fintech and enterprise sectors, given the speed at which AI capabilities are developing. Hiring is also anticipated to increase in 2025.

  • Three Bankers Join boAT for $300–500 Million IPO

    According to reports, boAt, a manufacturer of smartwatches and audio goods, has selected a number of bankers for an IPO that will cost between $300 and $500 million next year.

     According to media sources, ICICI Securities, Goldman Sachs, and Nomura have joined the business as IPO bankers. The report also stated that although final numbers may change closer to the IPO filing, boAt may aim for a valuation of more than $1.5 billion. Regarding the development, boAt has refrained from commenting. 

    Second Attempt by the Startups to Launch IPO

    It’s important to remember that this is the startup’s second attempt at an initial public offering. The company submitted its draft red herring prospectus (DRHP) for a public offering of INR 2,000 crore to the Securities and Exchange Board of India (SEBI) in 2022. Cofounder Aman Gupta stated last year that boAt was not in a hurry to pursue an IPO for the “next couple of years,” but eventually scrapped the plans. Rather than moving forward, boAt chose to raise $60 million in private funding from new investor Malabar Investments and current investor Warburg Pincus through convertible preferred shares, with a valuation cap of about $1.2 billion.

    Roadmap to Launch its IPO

    With plans to file for the upcoming fiscal year, the reports also stated that ICICI Securities would serve as the issue’s lead banker. The business has chosen four bankers in all. The news coincides with a severe slump in boAt’s wearables category, which saw its consolidated operating revenue drop by more than 7% to INR 3,117.7 Cr in the financial year 2023-24 (FY24) from INR 3,376.8 Cr in the previous fiscal year. The wearables segment saw a roughly 40% decline in sales, from INR 910.6 Cr in FY23 to INR 550.3 Cr in the reviewed year. However, revenue for boAt’s audio products segment, which makes up the majority of its total sales, increased by just 5% from INR 2,350.8 Cr in FY23 to INR 2,459.2 Cr in FY23.

    Nevertheless, boAt was able to reduce its loss in FY24 in spite of the drop in its income. During the year, the net loss of the Aman Gupta-led venture decreased by more than 38% to INR 79.7 Cr, a decrease from INR 129.4 Cr in FY23. Gupta and Sameer Mehta founded boAt in 2015, and it sells speakers, smart watches, headphones, and other items in the broader wearables and audio sectors. It has raised over $177 million in capital to date and is supported by companies including Qualcomm Ventures, Ranveer Singh, and Warburg Pincus, among others. One of the leading brands of audio devices in India, boAt faces competition from industry titans like JBL, Sony, Samsung, OnePlus, Noise, and a number of up-and-coming new-age businesses.

    Prosus Considers 2025 IPO for Fintech Firm PayU
    Prosus considers a 2025 IPO for its fintech company PayU, aiming to bring the digital payments leader to the public market.
    StartupTalkyNitin Konde