A naukri.com initiative
Bloomberg Quint
1M
421
Image Credit: Bloomberg Quint
Next Wave Of Internet IPOs To Ride On Profitability, Not Hype: BofA
- India's digital listings are classified into three cohorts by BofA: early birds, underperformers, and upcoming profitability-focused players.
- India is the world's third-largest tech maiden offering hub, following the US and China.
- Cohort 1 (2021–22) companies like Zomato and Nykaa set benchmarks for success despite initial losses.
- Cohort 2 (2024) companies like Swiggy and MobiKwik are struggling to meet IPO valuations, while others like Ixigo are performing well.
- Cohort 3 comprises future players prioritizing profitability over just growth for public market success.
- Key sectors like online travel and quick commerce are seeing growth, with companies like MakeMyTrip and Zomato leading the way.
- India's AI sector is focusing on agentic AI and application-layer innovations, with potential in chip design startups.
- Fintech startups in India are diversifying into lending and insurtech due to challenges in payment monetization.
- Direct-to-consumer brands are growing rapidly, leveraging platforms like Blinkit and Instamart, but facing challenges in loyalty and profitability.
Read Full Article
23 Likes
For uninterrupted reading, download the app