The first IPO of the food delivery giant Zomato in India was on the 23rd of July. The stocks soared over 80% after the $1.3 billion initial public offerings. The company has tapped into the capital markets in India, and the IPO has been a hit since March 2020, receiving nearly 35 times more bids from investors than the shares the company planned to sell.
While the IPO sets a precedent for technology development in India, the country is zooming at a rapid pace with a surprising amount of investment in innovative products and services. It is predicted that by 2025, UHNIs (ultra-high net worth individuals) in India will invest up to USD 30 billion in Indian digital companies, indicating a significant increase in investment vehicles for indigenous tech companies. Despite the economic crisis, Indian startups issued public offerings and raised huge funds, which led to boom times amid the crisis.
While the rest of the world faced battered economies due to the COVID-19 pandemic, according to NITI Aayog CEO Amitabh Kant, 256 Network, and Praxis Global Alliance research reveals that India has logged USD 38 billion in venture capital investment in the last six months.
An industry study published by Credit Suisse Group AG indicates that India boasts 100 unicorn companies with a market valuation of US $240 billion. The companies comprise e-commerce and financial technology, logistics, education, and food retailers.
Additionally, RedSeer predicts that online retail revenues will reach $55 billion in 2021, which is the most notable year-on-year increase it has ever experienced. The pandemic set back many developmental opportunities, devastating the country’s economic ecosystem. Yet, the government pledged to rebuild the economy to $5 trillion by 2025.
The company aims to expand its footprint globally, with eyes on reservations and delivery options in 100 cities across 19 countries, including Brazil, Turkey, Indonesia, and New Zealand.
Although China has been a former player in online users, India has grown to 625 million internet users, paving immense opportunities for online retail, social media, etc. Tech startups are gearing up with robust supply chains and delivery networks. Venture Intelligence reports that Indian startups raised $12.1 billion in the first half of 2021 from private equity firms and venture capitalists.