Lyft and Uber IPOs make us wonder: when will Indian unicorns go public?
22 April 2019 9:00 PM GMT
The dream of an initial public offering (IPO) by Indian unicorns remains distant as lack of depth in the capital markets and inflexible regulations hinder their aspirations.
- Siddarth believes that India too needs a similar platform where tech and tech-enabled companies can look to list and where investors are aware of the multiples of these firms and the growth trajectory.
- India's capital markets lack the depth or the capital to handle such disruptive tech-enabled companies.
- V Balakrishnan, chairman, Exfinity Ventures, says, "The US markets clearly understand technology disruption, and are in a better position to value companies based on future impact rather current financials.
- Companies making losses or sustained losses are valued better in the US because they look at future disruption."He further adds that Indian capital market is also not mature enough to understand the technology disruption of unicorns as it are more focused on factors like sustained profitability or cashflows.
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