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March 23, 2022

India IPO lineup for 2022 looks crowded

India is one of the fastest-growing economies in the world. The adoption of digital services in the country accelerated, following lockdowns and other disruptions amid the Covid-19 pandemic. Customers were forced to stay at home to reduce the spread of infection, leading to a shift to online services. This gave a significant boost to many tech, media, and telecom (TMT) companies.

According to GlobalData, 15 Indian TMT companies had their initial public offerings (IPO) in 2021. Established themes such as ecommerce and fintech were the drivers behind most of these IPOs. In 2021, the country saw several companies go public, including Paytm (fintech), Zomato (ecommerce), CarTrade (ecommerce), Aptus Value Housing Finance (fintech), Rate Gain (cloud), Easy Trip (ecommerce), and Nykaa (ecommerce).

India IPO pipeline is strong

The next two years have a strong pipeline for Indian IPOs as several major companies have already filed for IPOs. Notable ones include Navi Technologies, Pine Labs, Snapdeal, Delhivery, Droom, PharmEasy, and Oyo Rooms. Below are details of each.

Navi Technologies

Navi Technologies, a fintech startup that offers customers insurance and loan products, has recently filed for an IPO. Most of the proceeds from the IPO will be invested in two subsidiaries of the company—Navi Finserv Private Limited (NFPL) and Navi General Insurance Limited (NGIL).

Pine Labs

Pine Labs, a digital payment provider company, filed for a listing in the US in January 2022. It is expected to go public in the first half of this year. The listing could give Pine Labs a valuation of at least $5.5 billion.

Snapdeal

The online retail company filed for an IPO in December 2021 to raise around $165 million and is targeted to go public this year. The proceeds will be used for funding growth initiatives, expanding logistics capabilities, and enhancing the company’s tech infrastructure. It is aiming for a valuation of over $2 billion.

Delhivery

The ecommerce logistics company filed for an IPO in November 2021. The company plans to list within the next three months in India and intends to raise approximately $998 million, with an estimated valuation of $5 billion The Securities and Exchange Board of India (Sebi) has cleared Delhivery’s proposal for an IPO.

Droom

Online automobile marketplace Droom filed for an IPO in November 2021 and is expected to list this year. It plans to raise $262 million, with the proceeds used to fund its organic and inorganic growth initiatives.

PharmEasy

PharmEasy, an online pharmacy retailer, filed for an IPO on November 2021. In February 2022, Sebi approved the IPO proposal. It plans to raise $820 million with an estimated valuation of $9 billion.

Oyo Rooms

Oyo Rooms, an affordable lodging company, filed for an IPO in October 2021 and can go public in the first half of 2022. The company is aiming for a valuation of at least $9 billion and plans to raise approximately $1.2 billion through the listing. It intends to use the proceeds from the IPO to repay certain borrowings taken to fund the organic and inorganic growth initiatives of its subsidiaries.

Some of the other notable companies that have hinted at their IPO plans in 2022 are Ola Cabs, Swiggy, Byju’s, and Flipkart.

Ola Cabs

Ride-hailing aggregator company Ola Cabs is planning to go public in the first half of 2022 in India and is expecting to raise at least $2 billion. It has recently raised over $200 million from Segantii Capital Management and others at a valuation of over $5 billion.

Swiggy

Swiggy, an Indian food delivery company, is planning to go public in 2023 and is aiming to raise at least $800 million. It was last valued at $5 billion in January 2022, after raising $700 million from SoftBank Vision Fund, Prosus Ventures, and other investors.

Byju’s

The online education provider company is in negotiations with at least three special-purpose acquisition companies (SPAC) and is aiming to unveil plans to go public through a merger in the US. The company is expecting a valuation of around $40 billion. It has recently raised over $800 million in a private equity round at a valuation of over $21 billion.

Flipkart

The Walmart-owned online retail Flipkart is planning to go public outside of India in the second half of 2022. It was last valued at $37.6 billion in July, after raising $3.6 billion from the Canada Pension Plan Investment Board and other investors. It is planning to raise at least $3 billion in an IPO, with an estimated valuation of $50 billion. The pipeline for 2022 looks strong and we expect most of these companies to go public by the end of this year.

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