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How new-age startup IPOs performed in Q1 FY24

A dozen businesses have been listed on the bourses since 2021, when several Indian startups joined the initial public offering (IPO) frenzy. Entrackr has examined the most recent quarterly results of these cutting-edge startup initial public offerings to assess their financial stability.

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How new-age startup IPOs performed in Q1 FY24

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  1. How new-age startup IPOs performed in Q1 FY24

  2. A dozen businesses have been listed on the bourses since 2021, when several Indian startups joined the initial public offering (IPO) frenzy. Entrackr has examined the most recent quarterly results of these cutting-edge startup initial public offerings to assess their financial stability. Profit making new-age startup IPOs in Q1 FY24

  3. In 2021, Indian startups secured a record $38 billion in VC funding, fostering a favorable ecosystem. Eight startups, including Zomato, Nazara Technologies, Nykaa, CarTrade, and EaseMyTrip, went public. In 2022, IPO momentum slowed with only Delhivery and Tracxn listing due to market challenges, as others like OYO, boAt, PharmEasy, and more postponed IPO plans. In 2023, only drone tech firm ideaForge successfully went public. • In Q1 FY24, eight startups achieved profitability, notably Zomato turning profitable for the first time, following a Rs 188 crore loss in Q4 FY23. MapMyIndia led with Rs 32 crore profit, followed by EaseMyTrip, Nazara, CarTrade, and ideaForge. Nykaa reported Rs 5.4 crore profit, while Tracxn registered Rs 0.69 crore profit. Loss making new-age startup IPOs in Q1 FY24 • While Zomato and Nykaa thrived with substantial profits, major revenue earners like Paytm, Policybazaar, Delhivery, and Freshworks didn't attain profitability in Q1 FY24. Despite Paytm's 2X loss increase to Rs 358.4 crore from the previous quarter, losses contracted by 44.5% from Q1 FY23. • Policybazaar's losses rose to Rs 11.9 crore in Q1 FY24 from Rs 9.37 crore in Q4 FY23. Delhivery and Freshworks improved loss control. Freshworks achieved adjusted operating profit in Q4 FY23, aiming for Q1 FY24; Policybazaar targets FY24 profitability.

  4. Current market price Vs IPO price • Entrackr's chart shows the current market share prices compared to the IPO prices of various companies. Zomato, ideaForge, and MapMyIndia exceed IPO prices, while others trade lower. The downward trend may be reversing, suggesting improved market comprehension of their models. Zomato hit a 52-week high; Paytm rose as CEO Vijay Shekhar Sharma agreed to buy 10.3% from Ant Financial.

  5. The emergence of profits in startups can be perceived as a result of either public market discipline or a sign of maturity. While founders may not openly acknowledge potential lower growth, in a 6%+ growing economy, these firms have growth potential. Despite valuation setbacks for firms like Paytm and Freshworks, their recovery aids capital access for non-listed startups in a challenging market. If you want to get complete information related to this topic click HERE.

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