Latest news with #KashyapChanchani
Time of India
02-05-2025
- Business
- Time of India
Flipkart, PhonePe, Oyo among $100 billion tech startups eyeing IPOs by 2027
More than three dozen tech startups with a combined valuation of $100 billion are set to go public by 2027 in what would mark a rebound in stock sales in India, according to one of the country's top deal advisers to internet companies. Walmart Inc.-controlled online retailer Flipkart, payments firm PhonePe and lodging provider Oyo Hotels are among the companies seeking to list in the country, which was the world's second-largest market for share sales last year but has lost steam since. Most companies preparing for an initial public offering have been able to strike a balance between speedy growth and profitability, according to a report by the homegrown investment bank The Rainmaker Group. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pernas e pés inchados: Experimente isso para ajudar a drenar o fluído do edema aartedoherbalismo Undo Young companies are now in better shape than in 2021 and 2022, when several startups that sought to capture India's booming capital markets cratered after listing at high valuations, said Kashyap Chanchani, managing partner at Rainmaker. Payment provider Paytm has dropped about 63% since its IPO while beauty retailer Nykaa is down 4%. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. 'The financial health of the startups due to list in the next two years is materially better than the companies that listed previously,' Chanchani, who helped Indian startups raise $1 billion in equity last year, said in an interview. 'Two-thirds of these firms are already profitable, and they are also doing a better job with transparency.' Rainmaker's clients have included Oyo and e-commerce startup Swiggy, and the firm typically receives a cut of the fundraising deals it helps to arrange. It doesn't advise companies on IPOs. Live Events The number of share sales in India dropped by 34% in the first quarter as the stock market sputtered. The benchmark NSE Nifty 50 Index had risen for nine consecutive years, but it started declining in late September amid an unexpected slowdown in economic growth and a slew of analysts downgraded their expectations for corporate earnings. First-quarter proceeds from IPOs, block sales and share placements in India nearly halved to $7.1 billion, slipping below those of Hong Kong and Japan. Still, Chanchani is among bankers predicting that deals in India will pick up in the coming months, when several sales are expected to hit the market. Those include LG Electronics Inc.'s Indian unit, which may raise as much as $1.7 billion, and electric-scooter maker Ather Energy Pvt., which could raise about $400 million. A new surge in startup IPOs would provide a much-needed exit to large investors such as SoftBank Group Corp. and Prosus NV. Billionaire Masayoshi Son's SoftBank Vision Fund is a shareholder in companies such as Oyo, optician Lenskart Solutions Pvt., and used-car seller CARS24 Solutions Pvt., while Prosus is an investor in e-commerce firm Meesho and home services startup Urban Company. Firms like SoftBank and Prosus 'have a dozen companies or so where they are sitting on massive gains, and several of these firms have begun seeking the public markets route,' Chanchani said, cautioning though that IPOs will have to be priced carefully as retail investors will reject lofty valuations. Companies going public will have to assuage investor concerns about a slowing economy and earnings growth. Some of India's newly listed stocks have also declined after sales restrictions expired, adding pressure to a stock market already down hundreds of billions of dollars since late last year. India's startup economy remains among the biggest in the world after the US and China. Still, it's also one that's seen major corporate governance lapses, sinking valuations and profits turning to dust. Many young firms have been forced to cut jobs and growth plans, while others have imploded. Teacher-turned-entrepreneur Byju Raveendran's eponymous online tutoring business illustrates how a once high-flying company can run aground as investors lose faith in founders once-labeled charismatic.
Economic Times
02-05-2025
- Business
- Economic Times
Flipkart, PhonePe, Oyo among $100 billion tech startups eyeing IPOs by 2027
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel More than three dozen tech startups with a combined valuation of $100 billion are set to go public by 2027 in what would mark a rebound in stock sales in India, according to one of the country's top deal advisers to internet Inc.-controlled online retailer Flipkart, payments firm PhonePe and lodging provider Oyo Hotels are among the companies seeking to list in the country, which was the world's second-largest market for share sales last year but has lost steam since. Most companies preparing for an initial public offering have been able to strike a balance between speedy growth and profitability, according to a report by the homegrown investment bank The Rainmaker companies are now in better shape than in 2021 and 2022, when several startups that sought to capture India's booming capital markets cratered after listing at high valuations, said Kashyap Chanchani, managing partner at Rainmaker. Payment provider Paytm has dropped about 63% since its IPO while beauty retailer Nykaa is down 4%.'The financial health of the startups due to list in the next two years is materially better than the companies that listed previously,' Chanchani, who helped Indian startups raise $1 billion in equity last year, said in an interview. 'Two-thirds of these firms are already profitable, and they are also doing a better job with transparency.'Rainmaker's clients have included Oyo and e-commerce startup Swiggy, and the firm typically receives a cut of the fundraising deals it helps to arrange. It doesn't advise companies on number of share sales in India dropped by 34% in the first quarter as the stock market sputtered. The benchmark NSE Nifty 50 Index had risen for nine consecutive years, but it started declining in late September amid an unexpected slowdown in economic growth and a slew of analysts downgraded their expectations for corporate proceeds from IPOs, block sales and share placements in India nearly halved to $7.1 billion, slipping below those of Hong Kong and Chanchani is among bankers predicting that deals in India will pick up in the coming months, when several sales are expected to hit the market. Those include LG Electronics Inc.'s Indian unit, which may raise as much as $1.7 billion, and electric-scooter maker Ather Energy Pvt., which could raise about $400 million.A new surge in startup IPOs would provide a much-needed exit to large investors such as SoftBank Group Corp. and Prosus NV. Billionaire Masayoshi Son's SoftBank Vision Fund is a shareholder in companies such as Oyo, optician Lenskart Solutions Pvt., and used-car seller CARS24 Solutions Pvt., while Prosus is an investor in e-commerce firm Meesho and home services startup Urban like SoftBank and Prosus 'have a dozen companies or so where they are sitting on massive gains, and several of these firms have begun seeking the public markets route,' Chanchani said, cautioning though that IPOs will have to be priced carefully as retail investors will reject lofty going public will have to assuage investor concerns about a slowing economy and earnings growth. Some of India's newly listed stocks have also declined after sales restrictions expired, adding pressure to a stock market already down hundreds of billions of dollars since late last startup economy remains among the biggest in the world after the US and China. Still, it's also one that's seen major corporate governance lapses, sinking valuations and profits turning to dust. Many young firms have been forced to cut jobs and growth plans, while others have imploded. Teacher-turned-entrepreneur Byju Raveendran's eponymous online tutoring business illustrates how a once high-flying company can run aground as investors lose faith in founders once-labeled charismatic.
Mint
28-04-2025
- Business
- Mint
Peak XV Partners seeks AI edge with strategic investments in US funds, takes LP route
MUMBAI : Bengaluru-headquartered Peak XV Partners has made a clutch of investments over the past 12 months in a handful of seed and early-stage US funds, varying in size between $1 million and $10 million, a person with knowledge of the development said on condition of anonymity. The names of the funds could not be ascertained. The move is part of the venture capital (VC) firm's broader strategy to deepen its network and identify early trends on artificial intelligence (AI) where the US is the market leader, the person cited above said. To be sure, Peak XV (pronounced Peak 15) has also made direct investments in AI-related companies in the US market in the past two years since it separated with Sequoia Capital. Recent American investments include Supabase (US-Singapore), Atomicwork (US), Hightouch (US), Luminai (US), Nirmata ( US), RapidCanvas (US), among others. However, the person cited above said that building fund relationships will allow Peak XV to be ahead of the curve on new AI trends and can potentially lead to new introductions with the founders of upcoming firms where the firm might be able to invest in. Peak XV is also a limited partner (LP) in former executive Piyush Gupta's fund launched last November, and expects to be an investor in more funds launched by other former company executives, the person added. Separately, the firm is in early talks to raise up to $1.4 billion in a new India-SEA (Southeast Asia) fund, its first since the split with its parent. The fund is likely to be raised by end of the current financial year, people with knowledge of the development said. Making fund investments is a tried and tested way for new VC and private equity (PE) firms to enter a new market. When global investors first started investing in India, they made several LP investments in Indian fund managers to first understand the market, before they started making direct investments. Partners at Peak have been investing since 2006 and had access to the US market when they were part of Sequoia Capital. However, this access ended in June 2023, when Sequoia split into three globally. The India and South East Asia team became Peak XV Partners. 'Investing in funds helps in building out the ecosystem and to track larger opportunities in those markets better," said Kashyap Chanchani, founder and managing partner, The Rainmaker Group, an Indian investment bank. 'Firms get access to proprietary deals as well as widen the network and track trends besides simply making returns." In turn, the investee companies of these funds, too, stand to gain access to the India market and service base, according to Chanchani. For the past two years, Peak XV has been building out its US presence to recoup the access it had when the firm was part of Sequoia Capital. One key reason is to help its portfolio companies, which are already based in the US or have links to the US market. Peak XV has a portfolio of more than 400 companies across financial services, software and AI, and consumer internet, and across stages–seed, venture and growth. Nearly 150 companies have ties to the US market–either for market access or they were founded by Indian origin people incorporating in the US. Soon after the split in 2023, Peak XV hired Jaime Bott, a former talent executive at Sequoia Capital, to help hire talent for its portfolio companies in the US. In April 2024, it hired Dini Mehta and Chris Meritt as operating partners in the US. Earlier this month, it hired Arnav Sahu as partner and the firm's first investment team member in the US. Sahu was previously with Y Combinator. He has also founded a fintech app, BondGrid, and has worked at Spark Capital and Blackstone, PeakXV said earlier this month. Since the split with Sequoia Capital, Peak XV has seen at least half a dozen top executives from its India and SEA team leave. In recent months, partner Shailesh Lakhani and managing directors Abheek Anand and Anandamoy Roychowdhary left the firm. Last November, Piyush Gupta, managing director at Peak XV, left the firm to launch his own secondaries fund Kenro Capital. Other top executives such as Shweta Raj Kohli and Gayatri Yadav also left the firm. Last month, Shreyansh Thakur, an executive at PeakXV, also made an exit. Besides employee churn, PeakXV announced last October that it was cutting its management fee for its growth fund to stay competitive in the market. It also returned 16% of its capital from across funds raised for India and SEA, citing an overheated market. The VC major has sold stakes in its portfolio companies that were either headed for public market listings or pared down stakes in already listed firms such as Ixigo, Awfis, Go Digit General Insurance, Blackbuck, Zomato , Mamaearth, Truecaller, Indigo Paints , Five Star Business Finance, and Mobikwik, among others. The firm also took some money home by selling either partial or full stakes in its unlisted portfolio such as Rebel Foods, Healthkart, Finova, K12 Techno, and Cloudnine Hospitals. In all, the firm has clocked over $1.2 billion in exits in the past 12-15 months.
