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Top 10 internet IPOs to watch out: Flipkart, Paytm, Byjus, Big Basket & more

According to a report by Bernstein, key segments like e-commerce, financial technology and education technology have grabbed investors' interest due to structural shift in consumer behaviour in wake of coronavirus pandemic

Top 10 internet IPOs to watch out: Flipkart, Paytm, Byjus, Big Basket & more

Flipkart, Paytm, Byjus, BigBasket and other tech companies are expected to launch IPO in 2021/2022

The 2019-20 financial year saw flurry of Initial Public Offering (IPO) which hit Dalal Street and received good response from investors. IRCTC, CSB Bank, Ujjivan Small Finance Bank, Prince Pipes, IndiaMart, Neogen Chemicals, Rail Vikas Nigam, Sterling and Wilson Solar, and Affle India were among the key IPOs that made headlines last year. But the recent bull-run in global tech stocks has prompted many of India's tech unicorns to announce IPO plans for 2021-22.

According to a report by Bernstein, key segments like e-commerce, financial technology and education technology have grabbed investors' interest due to structural shift in consumer behaviour in wake of coronavirus pandemic. Leaders in these segments are gaining market share and improving unit economics.

Here's list of top 10 tech companies in India that have emerged as internet leaders and are expected to launch an IPO in 2021-22:

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Flipkart: Walmart-controlled e-commerce giant is India's leading online retailer with gross merchandise value (GMV) of $8.5 billion and 60 million+ users in FY19. Indian e-commerce is expected to reach around $130 billion in size by 2025 growing at 30%+ CAGR. Walmart has acquired 82% stake in Flipkart in 2018 at a $21 billion valuation.

Also Read: Mazagon Dock IPO allotment: How to check share allotment status

Paytm: Paytm, the leading payments company, has benefited from the digital adoption due to COVID-19. The company has around 150-200 million active users. Digital payments are at an inflection point in India with UPI based mobile payments expected to grow over 60% CAGR over next 5 years. Last round valuation was $16 billion. Ant Financials is the largest investor, holding 40% stake in the company.

Byjus: Byjus is the largest online education company in India. Lockdown due to COVID-19 pandemic has provided tailwinds to EdTech with traffic for leading apps up by 300%. Byjus has around 70 million registered users. Last round valuation was at nearly $11 billion. Key investors are Naspers and Sequoia.

PhonePe: Flipkart acquired PhonePe in 2015. PhonePe processes annualised total payments value (TPV) of $180 billion, with around 500 million monthly transactions. The company is expected to go public by 2023.

Also Read: UTI AMC IPO: How to check allotment status

Zomato: Zomato is the largest online food delivery company with over 50% market share in India. Online food delivery market is expected to reach $12 billion by 2022. Zomato does around 2 million orders per day. Take rate is 22%. Unit economics are positive. Ant Financials owns 26% stake in the company.

Policybazaar: Policybazaar is the largest online insurance company in India with nearly 90% market share. It does 0.4 million transactions a month with health commission rate of 19-20%. As per the CEO, company will launch an IPO in 2021. Softbank is the largest investor, holding over 15% stake in the company.

Delhivery: Delhivery is the largest third-party online logistics company in India delivering around 1 million packages in a day. The company has over 85 fulfillment centres and has delivered nearly 750 million orders till date. Large customers include Amazon and Flipkart. Last valuation was at $1.5 billion.

Also Read: Why Mazagon Dock's IPO has an edge over UTI AMC

Big Basket: Big Basket is India's largest pure play online grocery company. The company has seen sharp uptick in number of orders (3x) and new customers (2x) during the lock down. The gross merchandise value (GMV) of Big Basket reached $1 billion in June, delivering around 0.4 million orders per day.

Oyo: Oyo Rooms is currently the largest hotel chain in India and 6th largest globally. It has portfolio of over 1 million rooms globally and over 23,000 exclusive hotels across 800 cities. In India, OYO is present in over 415 Indian cities with 18,000 properties. It has over 75 million registered users on the app. Booking growth has been robust at 2.7x YoY jump in 2019 compared to 2018.

Ola: Ola is the leading cab hailing company with around 50-55% market share in India. It has presence in over 250 cities, 1.5 million driver partners and nearly 1 billion rides annually. It has built an international presence in Australia, UK and New Zealand. Ola has also ventured into payments (including pay later options).

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