Peak XV's Rajan Anandan Expects 100 Startups To Go Public In Next 7-8 Years
While startups are set to have decent fundraising in 2024, about 90% of Indian startups' capital comes from global sources, he said.
India's initial public offering market is open for startups, and about 100 are expected to tap into public markets for a listing in the next 7-8 years, according to Peak XV Partners' Rajan Anandan.
There are about 20 or so Indian listed startups, going back to MakeMyTrip, InfoEdge, and more recent ones include Zomato and PolicyBazaar, he said. "Our view is that the domestic capital available to fund the post-IPO companies is very very vibrant. Over the next 7-9 years, we're going to see another 100 startups in India go public. We think that's pretty remarkable right now," Anandan, managing director of the venture capital firm Peak XV Partners, told NDTV Profit on the sidelines of the Startup Mahakumbh event.
While startups are set to have a decent fundraising year in 2024, about 90% of the capital that goes into Indian startups actually comes from global sources, he said.
"Clearly there's a need for domestic capital to be going into startups. The good news is that a lot of domestic capital is now going into IPOs. The last several IPOs have been very successful—Mamaearth went from launch to IPO in seven years which is quite remarkable," Anandan said.
Indian family offices, among several other capital pools, will have to step up to fill the lacunae of domestic startup funding, according to the top executive.
"The government has allocated Rs 10,000 crore (for startup funding), but then if you look at all the other pools of capitals, at the state-level or banks like SBI, if you add all of that up, I think the number is getting close to Rs 50,000 crore," he said.
At Peak XV, there is about Rs 20,000 crore of dry powder lying around, the MD said. Dry powder refers to funds which have been raised by venture capital firms, but have not been deployed or invested into startups yet.
"Today, India, across all venture capital and private equity firms, has $20 billion, or Rs 1.6 lakh crore, of dry powder. It's a very very large number when it comes to opportunities," he said.
