Indian Matchmaking 2.0-Startups and IPOs

Sreetama

3 years ago

Unless you have been living under a rock, you would know that yesterday Zomato IPO went live and the whole social media went into a mad frenzy 🤪

From tweets to hashtags to memes, everyone shared their two cents on this big event. Not to mention Swiggy also came forward to congratulate their competitor for this new endeavour. 🤯

Wondering what’s this buzz all about?

Well, the order to decode this is on the way 😉

Order in some delicious food and let us dive in together (Well, in the story not in your food😜)

📈Indian Matchmaking 2.0-Startups and IPOs

What is an IPO?

Let’s address the elephant in the room first. What actually is an IPO? Through IPO or Initial Public Offering, a corporation offers its shares to the larger public by listing on the stock exchange. Allowing them a pie of their business. 🥧

So now, not only can you order food from Zomato but also place an order for their shares. Sounds pretty dope right? 🔥

Why would a “start-up” want to go public?

Every startup wants to expand and take over the world (Okay, that might be a slight exaggeration 😅) But yeah, the crux remains that every startup would want to grow, expand their business, invest in better technology and serve more customers. So, going public is a great way to raise funds and achieve these aims 🎯

It also allows early investors to exit the company if they want to by selling their stocks on the listed exchange.

Lastly, some might also say, it is an unusual but great way to raise brand awareness. Just look at the buzz that Zomato has managed to create. Even someone who doesn’t have much idea about capital markets must have heard of the Zomato IPO in the past couple of days.

Why is Zomato IPO such a big deal?🤔

For the uninitiated, this entire hullabaloo around Zomato IPO may seem a tad bit bizarre. I mean other companies have gone public, right? Why are people going crazy about it?

Well, it is actually a huge deal because Zomato is the first Indian online delivery company to get listed. It almost marks a new beginning in the entire Indian startup ecosystem. This excitement was apparent with many startup entrepreneurs coming forward to congratulate Zomato on their big achievement

Make it large Deepi !

Best wishes for superb listing. Rooting for you man 🚀🚀#ZomatoIPO https://t.co/ip11uQe6Ic
— Vijay Shekhar Sharma (@vijayshekhar) July 14, 2021

Congrats @deepigoyal ! What a milestone! Love what you have achieved in the last decade and now @Zomato has scaled! Many more decades of growth and impact ahead- more power to you!
— Ankur Jain (@TheBeerAnkur) July 14, 2021

Startups have been the new cool for quite some time now. They have managed to revolutionize the ways in which Indians shop, eat, watch a movie, listen to music, and whatnot. With all their accomplishment & disruptions, are startups underestimated as compared to traditional and listed companies? Especially by the slightly older generations? Well, Zomato and eventually other startups might be en route to change that

What does it mean for other startups and investors?

Zomato is just the first startup in the marathon. Others like Policybazaar, Nykaa, PayTm are following closely. And the first day bidding for Zomato proved that India is ready for these new-age IPOs.

The demographics of the Zomato subscribers also reveal that a major chunk of their subscribers came from the age group of 18-32.

With the appeal that these startups enjoy among the Millenials and Gen Z, it will not be very surprising to see young investors choosing to invest more and more in these new-age IPOs.

Also, as Nithin Kamath has rightly posed the question “Will Indian consumers becoming shareholders of the brands they use increase brand loyalty?” Will listing their shares on the stock increase aid in increasing their direct revenue through sales? Some of our team thinks so.

So which all IPOs are you going to subscribe for? Tell us in the comments below

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