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Tag: ipo

  • Capillary Technologies Secures Board Approval for INR 2250 Cr IPO Launch

    The board has given Capillary Technologies permission to raise INR 2,250 Cr, or about $263 million, through an initial public offering (IPO).

    In accordance with regulatory filings, the Warburg Pincus-backed business intends to raise INR 500 Cr through the issuing of new shares and will also have an offer for sale (OFS) component of INR 1,750 Cr, wherein some of its owners may dilute their shareholding.

    The plan to generate the aforementioned amounts through an initial public offering (IPO) was accepted by Capillary Technologies’ board on May 23. The choice must be approved by the company’s shareholders, though.

    In January, a media outlet revealed that Capillary Technologies intended to submit its draft red herring prospectus (DRHP) to SEBI, the market watchdog, by June in order to raise $200 million through an initial public offering (IPO).

    The Bengaluru-based company was aiming for a listing valuation of $500 million to $1 billion at the time, according to sources. It was not possible to determine the precise date of its mainboard listing.

    According to the company’s most recent regulatory statement, it might also think about raising more money in a pre-IPO deal.

    Second Attempt to go Public

    Capillary has already tried to list in India. The SaaS business first submitted a DRHP for an INR 850 Cr IPO in 2021, but it later abandoned the plans as the markets became unstable.

    Although the company has not yet released its FY25 financial results, according to records obtained from Tofler, its operating revenue increased by 80% year over year to INR 600 Cr in FY24, while its net loss decreased by 33% year over year to INR 59 Cr.

    At a time when over 20 cutting-edge digital businesses are getting ready to go public in 2025 due to high investor demand, Capillary has brought back its IPO ambitions. Shiprocket, PhysicsWallah, Groww, and boAt are among them; throughout the last few months, they have all submitted confidential IPO documents to SEBI.

    In the upcoming six months, it is anticipated that companies such as Urban Company, BlueStone, Avanse Financial Services, Smartworks, IndiQube, and ArisInfra would also go public. In addition, companies like OfBusiness, Pine Labs, Razorpay, PhonePe, and Lenskart are stepping up their preparations for possible initial public offerings.

    Capillary Technologies Operations and Clientele

    Capillary Technologies, which was founded in 2008 by Aneesh Reddy, Ajay Modani, and Krishna Mehra, offers software for client engagement and loyalty. Among its customers are Domino’s, Indigo, Tata Group, and Aditya Birla Group.

    Reddy is still the company’s top boss, even though Modani and Mehra have already left. Capillary asserts that it is present in foreign markets like the US, MENA, and Southeast Asia in addition to India. It closed its Series D financing at $140 million last year.

    About $95 million of its funding was made up of secondary deals, which allowed new investors to join the cap table while also providing partial exits to current investors and former workers.

    Among the well-known firms supporting Capillary are Qualcomm Ventures, American Express Ventures, Norwest Venture Partners, Avataar Ventures, Filter Capital, InnoVen Capital, and Peak XV Partners.

  • Meesho Unveils INR 411 Cr Bonus Share Plan Ahead of IPO

    A plan to issue 411.4 Cr bonus shares has been authorised by Meesho’s shareholders before the e-commerce giant files its draft red herring prospectus (DRHP) with SEBI, the market regulator.

    The proposal to issue bonus shares of INR 1 each to equity owners in a 47:1 ratio was accepted by the members at an extraordinary general meeting on May 31, according to the company’s MCA filings.

    The filing stated that the board of directors has been given the members’ consent to issue 411.4 Cr bonus equity shares worth INR 1 each, which will be credited as fully paid-up shares to the holders of the company’s existing equity shares.

    The company’s paid-up share capital will rise from INR 8.7 Cr to INR 420.1 Cr after the allocation. Tiger Global Management, Peak XV Partners, Prosus, Meta, and Think Investments are among the backers of the Bengaluru-based e-commerce giant.

    Meesho’s IPO Preparations

    By the end of 2025, the e-commerce giant is reportedly hoping to generate up to $1 billion through its first public offering (IPO). For its initial public offering (IPO), the startup has selected Morgan Stanley, Kotak Mahindra, and Citi as its bankers.

    According to reports, the investors suggested valuing the public offering at $10 billion. In order to improve brand memory among its stakeholders prior to its eventual stock market offering, the business rebranded its parent corporation from Fashnear Technologies Private Limited to Meesho Private Limited last month.

     Similar actions have previously been taken by consumer services titan Swiggy, fintech unicorn Moneyview, and fast commerce startup Zepto. Meesho was first established in 2015 as a social commerce firm by Vidit Aatrey and Sanjeev Barnwal. In 2022, though, it switched to a marketplace model in order to compete with Amazon and Flipkart.

    Meesho Focusing on Tier II, III and Beyond Cities

    Meesho sells unbranded goods like clothes and cosmetics to consumers in tier II, tier III, and beyond, while Flipkart and Amazon are more well-known in tier I cities. These cities account for over 80% of the startup’s income.

    It’s interesting to note that Meesho depends on advertising and marketing revenue from merchants rather than commission fees on its platform. So far, it has raised over $1.6 billion in capital, with investors including Trifecta Capital, Elevation Capital, and Mars Grow Capital.

    Although the e-commerce platform has not yet released its FY25 figures, it was able to reduce its standalone net loss from INR 1,675 Cr in the previous fiscal year to INR 305 Cr in FY24, an 82% decrease.

    From INR 5,734.5 Cr in FY23 to INR 7,615 Cr in the year under review, operating revenue increased by almost 33%. Flipkart, Meesho’s competitor, is also preparing for a first public offering.

    Joining the lengthy list of cutting-edge internet companies that have moved their headquarters to India or are in the process of doing so in order to list on the Indian bourses, the e-commerce behemoth said in April that it would reverse flip to India. Razorpay, Zepto, PhonePe, Groww, Pine Labs, and Eruditus are a few examples of these names.

  • Bollywood Celebrities and Cricketers Back Karamtara Engineering in Pre-IPO Funding Round

    Cricket players Rohit Sharma and Jasprit Bumrah, together with Bollywood actors Ranbir Kapoor, Karan Johar, Bimal Parekh and Aamir Khan, have invested in the pre-IPO round of power transmission company Karamtara Engineering.

    Backwards-integrated, Karamtara Engineering produces goods for the transmission lines and renewable energy industries. It can act as a one-stop shop for solar structures (trackers and fixed-tilt) because of its wide range of products.

    The company sells overhead gearbox line hardware fittings and accessories, lattice structures for gearbox lines and fasteners for the solar, wind, gearbox and industrial sectors.

     According to a public statement, the company’s promoters, Tanveer Singh and Rajiv Singh, engaged in a secondary sale to transfer 3,409,724 equity shares at a total price of INR 310 each, for a total of INR 106 crore.

    Khan acquired 1,29,050 shares for INR 4 crore, Kapoor acquired 1,61,300 shares for INR 5 crore, while Karan Johar acquired 4.85 lakh shares for INR 1.5 crore. According to the notice, Sharma and Bumrah also paid INR 2 crore apiece for 64,520 shares.

    In January, Company Raised INR 307 Crore

    On January 10 of this year, Karamtara, which is in competition with listed companies such as Inox Wind, KP Green Engineering, Premier Energies, Waaree Energies, and Suzlon Energy, raised INR 307.17 crore by offering 98.08 lakh shares at the same price to a number of investors.

    The company received preferential allocations from well-known investors such as Jagdish Naresh Master, Utpal Hemendra Sheth, Singularity Growth Opportunities Fund, Gaurav Trehan, Quantum State Investment Fund, Ananta Capital Venture Fund, Jaidev Rajnikant Shroff, Axia Select Opportunities Fund, Mithun Padam Sacheti and Siddhartha Sacheti, and MNI Ventures.

    Karamtara Engineering, situated in Mumbai, intends to raise INR 400 crore through an offer-for-sale process and INR 1,350 crore through a fresh issue component. In the offer-for-sale, promoters Tanveer Singh and Rajiv Singh would each be selling shares valued at INR 200 crore.

    How Company Plans to Utilise Fresh Proceeds?

    By using INR 1,050 crore of the proceeds from the new issuance to pay down debt and the remaining money for general corporate reasons, the company hopes to drastically lower its debt load. As of November 2024, it had outstanding acceptances under letters of credit totalling INR 733.6 crore and outstanding borrowings from banks and financial institutions totalling INR 586.4 crore.

    JM Financial, ICICI Securities, and IIFL Capital Services will be the book running lead managers in charge of the public offering. In January, Karamtara Engineering submitted preliminary documents to the Sebi, the market watchdog, requesting permission to raise INR 1,750 crore through an IPO.

    In FY2024, the company reported a Profit After Tax (PAT) of INR 102.65 crore, more than doubling the INR 42.36 crore recorded in the previous fiscal year. FY2023 revenues increased from INR 1,600.31 crore to INR 2,425.15 crore.

  • Indira IVF’s INR 3,500 cr IPO Strategy Might Thrown Off Balance by a Movie

    According to media reports, Indira IVF Hospital Ltd., which is funded by EQT, has temporarily cancelled its preparations for its IPO. The decision was taken due to a Bollywood movie about the life of its founder, Ajay Murdia. According to reports, the business, which had initially sought an IPO of INR 3,500 crore, reportedly encountered issues with the nation’s market regulator. SEBI was unhappy because of the release date of the film Tumko Meri Kasam. A little more than a month after the company revealed that it had secretly filed for an IPO. The film, which is a fictionalised account of Murdia’s life and his chain of clinics, was released on March 21. The main actors in the Vikram Bhatt-directed movie are Ishwak Singh, Esha Deol, Adah Sharma, and Anupam Kher. Nitiz and Kshitiz, the sons of Ajay Murdia, are acknowledged as producers, and Indira Entertainment is the production company.

    IVF Indirectly Promoting Itself: SEBI

    After noticing this, the Securities and Exchange Board of India (SEBI) expressed concerns about Indira IVF’s indirect self-promotion. According to various reports, the company reportedly withdrew the offer due to the regulator’s assessment of the biopic and the proximity of its release to the IPO filing. In response to a question from the media, the company said that after weighing a number of variables and business concerns, it had chosen to withdraw the previously submitted DRHP. Additionally, it stated that SEBI did not order them to revoke the offer. When the business might try to make the offer again is unknown. In 2023, Boston-based TA Associates and the company’s founders sold a majority share in Indira IVF to Stockholm-based investment firm EQT. Through the transaction, TA Associates left the company, but the Murdias kept a minority ownership and continued to run it.

    Indira IVF’s Confidential Route of Filing

    Indira IVF was one of the numerous businesses that recently chose to file confidentially. Credila Financial Services Ltd., Swiggy Ltd., Vishal Mega Mart Ltd., and edtech unicorn Physicswallah Ltd. are among the other businesses that chose the same path. Companies who choose to use the optional confidential initial public offering (IPO) process register their IPO in a confidential manner. In December 2022, SEBI made this available, and Tata Play Ltd. was the first business to utilise it. A business files their DRHP using this method, but the paperwork is not immediately made public. It is only made public when the business chooses to launch its initial public offering. A business might shield what it considers to be sensitive information from its rivals by utilising a confidential filing.

  • 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.

  • OYO Rushes to go Public as the Debt Deadline Approaches

    OYO, a travel tech platform, is speeding up its plans for an IPO as it approaches a significant deadline for year-end debt payments. A media agency reported that if the business doesn’t go public by October, creditors, notably Mizuho Financial Group Inc., are putting pressure on founder Ritesh Agarwal to pay back a $383 million loan that was a part of a bigger financing package. According to the story, which cited sources, lenders want to know more about Agarwal’s financial situation and might postpone the payback deadline until 2027—but only if OYO goes forward with listing this year. With a guarantee from SoftBank CEO Masayoshi Son, the OYO founder borrowed $2.2 billion in 2019 to expand his ownership of the company and fortify his strategic control over the business. According to the article, Agarwal has not yet paid back the first tranche of the loan, which was restructured in 2022.

    The Much Awaited IPO

    Although OYO had long contemplated an IPO, their intentions were thwarted by the COVID-19 pandemic. According to the sources, the business has now started talking to bankers about a possible listing and is looking for a valuation of up to $5 billion. With a holding of more than 40%, SoftBank continues to be OYO’s largest stakeholder, while Agarwal, whose prior IPO attempts failed, owns more than 30%. When OYO’s IPO preparations are finalised, they will consider the company’s “strong net profits” for the fiscal year ending March 2024 and an “expected strong year” through March 2025, according to a statement from Agarwal’s family office. The family office refuted claims about reorganisation and funding arrangements as “completely incorrect” and called them rumours or speculation. Additionally, it denied the rumoured valuation, claiming that it is lower than recent secondary trades that they are aware of and does not reflect reality.

    What Lead to the Financial Crunch?

    Founded in 2013, the travel tech business with its headquarters in Gurugram gained the support of SoftBank, who promoted aggressive expansion into areas such as the US and Japan, which ultimately resulted in significant failures. Due to its dependence on low-cost hotels for budget-conscious clients, OYO was especially susceptible to the COVID-19 outbreak, which had a negative effect on its operations. The company’s difficulties, which range from legal challenges to losses brought on by overly ambitious overseas development, are indicative of India’s startup boom, which was fuelled by venture financing but stalled as investors turned their attention to profitability.

    The Recovery Mode

    OYO has steadily recovered after the pandemic, and as sales increased, it reported a slight profit for the fiscal year that ended in March 2024. Through his Singapore-based investment company, Patient Capital, Agarwal contributed over $95 million to the business at the end of 2023. In the second quarter of FY25, OYO declared a net profit of INR 158 crore. For the next two quarters of FY25, the business was able to report profits. OYO reported revenue of Rs 5,541.6 crore and a net profit of INR 229.6 crore for FY24, according to research platform Tracxn.

    Recent strategic initiatives of the company include the premiumization of its portfolio in India, the acquisition of Checkmyguest, a rental home company located in Paris, and G6 Hospitality, a significant hotel chain based in the United States. Moody’s, a global rating agency, kept its outlook unchanged and raised OYO’s rating from B3 to B2. In FY25–26, OYO’s first full year of profits consolidation with its recently acquired businesses, it projects that its EBITDA will reach $200 million.

  • Perfios Introduces INR 645 Cr New ESOP Scheme

    Ahead of its much-awaited $500 million initial public offering (IPO), Fintech SaaS startup Perfios has developed a new employee stock option plan (ESOP) for its staff called “Perfios ESOP 2025-A.” At an extraordinary general meeting on February 5, the company’s board approved the plan to launch the new ESOP program. The company will offer 2.05 lakh stock options to its employees via the Perfios ESOP 2025-A program, according to regulatory records that are available at the Registrar of Companies. The development was initially reported by Entrackr. According to the report, the recently added stock options are valued at over INR 645 Cr, or almost $76 million.

    What is the New ESOP Plan and Company’s Preparation Before its IPO?

    Under the new plan, after the four-year vesting period is up, Perfios will issue, distribute, and allot an equal number of equity shares to its employees. Perfios, which was founded in 2008 by VR Govindarajan and Debasish Chakraborty, offers financial institutions software solutions for a variety of purposes, including credit decisions, analytics, onboarding automation, and due diligence. After raising $80 million from Teachers’ Venture Growth (TVG), the late-stage investment division of the Ontario Teachers’ Pension Plan, a Canadian pension fund, Perfios became a unicorn in March 2024. The most recent development coincides with rumours that Perfios intended to raise $500 million at a $2 billion valuation through its initial public offering (IPO). There have been rumours that the fintech SaaS startup was considering going public in 2024. In November 2023, Perfios named Anu Mathew as chief people officer (CPO) and Sumit Nigam as chief technology officer (CTO) in anticipation of a possible initial public offering (IPO).

    Perfios’ Recent Developments and Financial Outlook

    According to reports, Perfios was in negotiations to enter the US market in October 2024 as part of its development strategies to spur growth. For an undisclosed sum, it purchased CustomerXPs, the parent company of banking fraud management startup Clari5, earlier this month. From INR 7.8 Cr in the previous fiscal year to INR 71.7 Cr in the fiscal year 2023-24 (FY24), Perfios’ consolidated net profit soared by 819%. From INR 406.8 Cr in FY23 to INR 557.8 Cr in the year under review, revenue from operations increased 37.1%.

    As an attraction tactic and a means of generating income, a number of cutting-edge software companies, like Razorpay, Flipkart, Swiggy, Nykaa, and Delhivery, have offered their staff ESOPs in recent years. In 2024, 16 cutting-edge tech businesses took part in ESOP buybacks, creating $148 million in wealth for their employees, in addition to Indian startups issuing ESOPs.

    Nykaa Grants 90.5K Shares Under ESOP Scheme
    Nykaa has allotted 90.5K shares under its ESOP scheme, reinforcing its commitment to employee benefits and long-term growth incentives.
    StartupTalkyNitin Konde

  • 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

  • PhonePe, Owned by Walmart, Getting Ready for its IPO in India

    With ambitions to list on Indian stock exchanges, fintech business PhonePe said on 20 February that it has started preparing for the start of its initial public offering (IPO). According to a press release from PhonePe, the company, which will mark its tenth anniversary this year, provides cutting-edge financial services and technological solutions to hundreds of millions of users. Having been established in India and being a pioneer in the country’s fintech sector, PhonePe has long hoped to go public, the statement further stated. After moving from Singapore to India in December 2022, PhonePe created a distinct corporate structure and made all of its new non-payment companies fully owned subsidiaries.

    Why it is the Right Time to Go Public?

    The release stated that now is a good time to be ready for a public offering because of PhonePe‘s robust top-line and bottom-line growth throughout its varied business portfolio, as reported in its FY23-24 annual report. Its revenue surpassed INR 5,000 crore in FY 23–24, increasing 74% year over year and making adjusted PAT positive (PAT less expenses for Employee Stock Options, or ESOP). In contrast to the INR 738 crore loss for FY 22–23, the group recorded an adjusted PAT of INR 197 crore for FY 23–24. Additionally, the standalone payments company reported an adjusted PAT of INR 710 for FY23–24, as opposed to a loss of INR 194 crore for FY22–23. PhonePe is licensed to operate a wide range of operations, including stock broking, insurance broking, prepaid instruments, and payment aggregators.

    Investors of PhonePe

    The company’s 2024 annual report states that prominent investors have contributed INR 18,000 crore to PhonePe. According to PhonePe’s annual report, the company’s roster of investors includes some of the most recognisable strategic investors, sovereign funds, and private equity investors worldwide, led by Walmart Inc., its largest shareholder. August 2016 saw the release of the PhonePe digital payments app. By January 2025, PhonePe boasted a network of over 4 crore merchants accepting digital payments and over 59 crore lifetime registered users. Additionally, PhonePe handles more than 31 crore transactions every day, with a total payment value (TPV) of more than INR 145 lakh crore annually.

    Due to a robust IPO market and a resurgence of investor interest in tech equities, a number of technology businesses intend to go public in 2025. Lenskart, an eyeglasses startup, has contacted investment banks to present for the mandate for its possible initial public offering (IPO), which may raise $1 billion. Groww, a stock broker, had selected five investment banks for a $1 billion initial public offering.

    In the near future, startups like SoftBank-backed OfBusiness, contract maker Zetwek, and financial unicorn Pine Labs hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025. This comprises companies that aim for $500 million initial public offerings (IPOs), such as edtech company PhysicsWallah, AI unicorn Fractal, construction materials portal Infra.market, and leader in rapid commerce Zepto.

    SEBI Plans to Boost Angel Fund Investor Participation
    SEBI aims to increase the number of angel fund investors in India, enhancing startup funding and boosting early-stage investment opportunities.
    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