The CapTable Wrap: Zomato’s stellar debut, Paytm’s IPO highlights, Policybazaar’s hybrid route, & credit on UPI
If Zomato's sparkling trading debut was meant to deliver a message, it was this: that public markets now seem to have the same risk appetite that deep-pocketed investors have for tech startups. After Zomato’s IPO, The CapTable, our premium subscription product, turned its focus to another high-profile public share listing. Paytm is planning the largest IPO by an Indian company till now, and its draft red herring prospectus has some interesting reveals. Also covered last week were IPO-bound Policybazaar’s hybrid growth strategy, and the ‘ban’ on advancing credit on UPI transactions.
Read on for a roundup of The CapTable articles from last week.
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Zomato became India’s most-valued listed internet company with a market cap of nearly Rs 1 lakh crore, or $13.5 billion, on its trading debut. The food delivery company is now also one of the world’s most richly valued tech stocks, making Zomato’s IPO a big win for its employees, who own about 4.2% stake in the company.
Paytm wants to be the first super app to IPO from India. But its draft prospectus reveals the company’s dependence on its payments and banking business as its cloud and commerce services units falter. The CapTable sifted through Paytm’s filing to highlight five factors to keep track of as the company starts its mega IPO process.
Policybazaar wants to IPO as an insurance broker and not merely as an online aggregator. For all its online dominance, Policybazaar has decided it needs to go offline for larger revenue streams and more business opportunities. That’s because the digital market for insurance in India is a tiny component of an already tiny domestic market for insurance.
Another fintech innovation became popular in a hurry—credit on UPI transactions. But NPCI and RBI view this as a back route arrangement involving banks and fintechs. The startups have been asked to move to overdraft accounts for such disbursals instead. But this would mean reworking arrangements with banks, which would bring in stricter verifications of borrowers.