Secondary exits vs IPOs, Q&A with Nithin Kamath, India’s Thrasio model, & more

Should investors cash in on the increasing valuations of startups or hold on, now that other, perhaps more rewarding, options are opening up to sell their investments?
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“For the first time in the history of Indian venture capital, exit is a choice for me. When did you have the choice to wait for an IPO?,” Matrix Partners Managing Director Avnish Bajaj tells The CapTable in

an article on the changing trends in startup exits.

Speaking about which, read what Zerodha’s Nithin Kamath has to say about startup IPOs. We also wrote on the exciting new trend of Thrasio model businesses and why it will have to take a somewhat different route in India. In The Crux, we analyse rural consumption numbers, which haven’t been looking good this year. Also, what Navi is up to as it scales up its lending business.

Here’s a roundup of news and analysis last week from The CapTable.

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 Premium Reads

India's Thrasio: Playing blind in a maze of opportunities

US-based Thrasio is profitable, has raised about $1.7 billion in funds, including debt, and is now considering a public listing. All this in just three years. Naturally, Indian entrepreneurs see huge opportunity in replicating the model here--of aggregating moderately successful online brands and scaling them up. But India presents multiple hurdles that they need to get past to find success.

In a rare good year for startup exits, a toss-up between prudence and greed

With $2.5 billion in exits from half a dozen unicorns, 2021 is looking like a great year for venture capital investors. Now with several startups planning public share listings in India, investors are hoping for mega returns from IPOs. But there’s also a fear of cashing in too early from what could be their biggest winners.

Startups might lose risk-taking ability post IPOs: Nithin Kamath

Zerodha rode a wave of new traders joining the stock market last year. But revenue faces regulatory pressures and CEO Nithin Kamath has his hopes on an asset management licence that will allow Zerodha to develop passive mutual fund products, which is where the money is in the mutual fund business. In an interview, he also spoke extensively on the IPO-bound startups.

The Crux 

[Crisp and incisive analysis on the developments that matter]

Navi hires Bajaj Finance veteran, rejigs top deck to scale up lending

The Sachin Bansal-promoted startup is strengthening its lending, risk, and collections operations with a key hire as its head of risk and crucial management changes as it doubles down on its home and personal loans

portfolios.

What payments data say about drop in rural consumption

Financial services startups are seeing a dramatic slowdown in consumption in India’s small cities and towns, which weren’t affected as much last year and had in fact helped the country bounce back faster from the pandemic restrictions. While rural demand slowed in April and May, there’s hope the monsoon rains will help the rural economy spring back.

[The Premium Reads are exclusive to paying subscribers. The Crux is free to read. All you have to do is sign up.]

Edited by Teja Lele Desai

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