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Big Deal: Experts discuss valuations of startup IPOs

Updated : July 15, 2021 17:33:33 IST

Big Deal this week has to be the IPO frenzy in the startup world. This particular week has been momentous in many ways because Zomato the first unicorn and the food delivery giant has launched its big bang IPO. Paytm, the largest of them all IPOs is getting IPO ready and there are many others in the pipeline.

To discuss this and more about the valuation aspect also CNBC-TV18’s Nisha Poddar spoke to Ranu Vohra, Co-Founder & Exec VC of Avendus Capital, Rahul Arora, CEO of Nirmal Bang Instl Equities and Anand Lunia, Founding Partner of India Quotient.

Ranu Vohra said, “Lot of things have come together for these so called startups today - what I call it double-double whammy. There are several factors that play here. One factor is the whole macro tailwind which is kind of bringing these companies to a higher edge of growth that is on the back of things like increase in per capita GDP, the whole movement from unorganised to organised sector, turbo charged founders and the pandemic led acceleration.”

He added, “So all of these things coming together is something which is just catapulting these companies into a place where they are looking ready for the public markets.”

On valuing these companies Anand Lunia said, “I would look for how dominant the company is in the market, market share for example and how desperate and how keen are the customers, how dependent are the customers on and how sticky are the customers with it. I am not right now focusing on profitability kind metrics simply because these are very long-term gains and most of the founders - turbo charged founders who come with a very long term horizon so I think this will about winning the market first and then going to all the profitability and other metrics later.”

For the full interview, watch the accompanying video.
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