Why investors appear to remain bullish on Indian tech startups
India’s technology start-ups are expected to continue to lure investments from private as well as public markets in the coming year as they are growing and maturing and on the right track even amid the pandemic.
India’s technology start-ups are expected to continue to lure investments from private as well as public markets in the coming year as they are growing and maturing and on the right track even amid the pandemic. The country has been witnessing an enormous shift in the start-up environment over the past year, with several high-profile startups making their debut across the stock market and getting listed. These startups include payments giant Paytm, food-delivery app Zomato, and the parent company of online insurance, Policybazaar. More start-ups are presently working on their way into the IPO pipeline, which includes Ola and Oyo.
Indian tech start-ups also been found to raise a record amount of investment from venture capital firms. Those investors have been found to pump more than USD 28.2 billion worth of investments into the startups in 2021 spanning across 779 deals. It marks more than 200% jump in capital in comparison to the USD 9.4 billion invested past year.
Rajan Anandan, who is the managing director at Sequoia Capital India, stated that the venture firm is growing “very bullish” on India’s technology startup ecosystem and their ability to generate long-term revenue for stakeholders. The success of companies across both domestic and international front has definitely added to the trust of the investors all over the world. Sequoia Capital India witnessed more than eight portfolio companies that have made their stock market debuts across 2021. The reception that some of the India’s top tech IPOs received has grown in variation among investors. Where Zomato shares registered a stellar stock market debut and have recorded a jump of around 5.44% from their first day of stock trading on July 23, Paytm has been witnessing a sharp decline and has now been found down by more than 13% since its Nov. 18 debut.