Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.
Hello reader,
Not to question Shakespeare, but is what’s past really prologue?
It’s tempting to look at what’s happened before as the best predictor of what’s to come, but there are plenty of examples countering that.
Football clubs regularly shell out the big bucks to bring in a player who just had a great World Cup but then proceeds to flop. Or just look at any number of startup scene darlings that suffer precipitous falls while the ink is still drying on articles heralding their rise (WeWork, anyone?).
India’s IPO market flew high in 2024, with more than US$3 billion raised and investment bankers predicting that the party will continue till 2025. But that seems less and less like it’s the case, regardless of how the prologue may read.
Today we look at:
- Choppy waters in India’s IPO seas
- CarDekho cutting its losses ahead of plans to go public
- Other newsy highlights such as Standard Chartered moving to mint Hong Kong’s first stablecoin and President Xi Jinping meeting top Chinese tech leaders
Premium summary
Crossroads for IPOs in India
Image credit: Timmy Loen
2024 was a banner year for India’s IPO market, but initial optimism that the good times would continue throughout 2025 may fade.
With the bull run slowing down and major firms that listed last year trading below their offer price, companies taking the plunge this year could be in for a rude awakening.
- Past performance: Food delivery firm Swiggy made its debut last November, but an increased net loss in its most recent financial results led its share price to drop by 6.3%. Such examples could spark increased investor skepticism toward startups that have high growth but are unprofitable, which describes many of the firms hoping to list this year.
- Fintech future: Companies including Pine Labs and PayU could do large IPOs in 2025. While neither firm is profitable yet, other fintech players have reached this milestone, which could boost their prospects.
- Local edge: While foreign investors pulled out a significant amount from Indian equities in January, the loss of their capital could be offset by domestic buyers. While in the past domestic investors took their cash during market downturns, many have stayed committed, boosting analysts’ confidence in long-term growth.
Read more: India startup IPOs: on a knife-edge
CarDekho revs down losses
Great lessons on building products – right from the source
Quick bytes
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
