1947 Tech 🇮🇳: 163
Upcoming IPOs, acquisitions & more!
1. Fintech firms set for IPOs but face challenges
India’s fintech sector is set for landmark Initial Public Offerings (IPOs) in the next five months as at least three startups — Paytm, Mobikwik, Policybazaar — are likely to raise up to Rs 28,000 crore ($3.7 billion) through public offers betting on favourable market dynamics where both institutional and retail investors are operating with abundance of liquidity.
According to industry experts, successful listings by these fintech companies could trigger a larger number of homegrown fintechs to make their debuts on Indian exchanges in the coming years mirroring the trends set by foreign counterparts listed on Nasdaq of the United States and China’s Shanghai Stock Exchange over the last two years.
However, these IPO-bound startups are set to face unique challenges, which include building public confidence around respective revenue models, diluting foreign ownership as well as working around tighter scrutiny by multiple regulators in the financial sector ahead of their highly-anticipated public offerings, the experts said.
2. Byju’s made three acquisitions this past week, collectively worth over a $1B dollars.
Byju’s, India’s most valuable startup, has acquired Singapore-based Great Learning, which offers professional upskilling and higher education courses, for $600 million in a cash, stock and earnout deal. The acquisition marks its push into the professional upskilling and life-long learning space in India and globally with a total commitment of $1 billion as it expands its offerings beyond the K-12 and test prep segments. The Bengaluru-based edtech unicorn has earmarked another $400 million for this segment.
The acquisition comes just a week after Byju’s shelled out $500 million to buy US-based Epic, an online reading platform for children. The acquisitions are funded from its recent $1.5 billion fundraise from UBS Group, Abu Dhabi sovereign fund ADQ and Blackstone Group LP, among others, at a valuation of $16.5 billion. In April, it also signed one of the largest acquisition deals in the edtech space, acquiring Aakash Educational Services Ltd for $950 million. In an interview, Byju Raveendran, founder and CEO, spoke about Byju’s’ acquisition strategy, growth outlook and focus areas
Worth your attention
ShareChat parent raises additional $145 million at $2.8 Bn valuation Link
Mamaearth raises $50mn round led by Sofina Ventures Link
Byju’s acquires reading platform Epic for $500 million in US expansion push Link
BlackBuck turns unicorn with $67 million fund raise Link
Ahead of filing DRHP, Nykaa converts into a public company Link
Great Learning employees to make $100M from the $600M acquisition to BYJU’S Link
Zomato CEO’s letter to shareholders on day of listing. Full text here
GOAT Brand Labs raises $36 Mn from Tiger, Flipkart Ventures and others Link
HealthifyMe raises $75 mn to deepen international focus Link
Trifecta Capital raises $130 mn for close of VC fund Link