startup unicorns: startup unicorns keeping an eye on IPOs talk technology with India’s top mutual fund companies

More than a dozen domestic institutional investors (DII), including HDFC Mutual Fund, Axis Mutual Fund, Mirae, with $ 250 billion under management, met with the founders and leadership teams of Indian unicorns Swiggy, Meesho, Unacademy, Lenskart and Acko, among others, who are all looking forward to a possible listing in the next two years.

The two-day meeting, held in Bengaluru and hosted by Japan’s SoftBank and JP Morgan, was intended to help the national public investment community understand some of the technology businesses and their path to take. The meeting is significant as it comes at a time when the global tech industry is undergoing a major correction in both private and public market valuations.

“DII is a fundamental element of the Indian stock market and will become more and more important over time … As more and more technology companies go public and become a more significant part of the indices, it is essential that these two components build a relationship and understand each other better, ”said Sumer Juneja, managing partner and head of India, SoftBank Investment Advisers.

Last year, eight Indian startups went public on public markets, including,, PolicyBazaar and – with seven of them on national exchanges.

However, DII took a mixed view towards these tech lists. For example, during the listing of Zomato in July 2021, nearly 19 domestic mutual funds participated in its anchor book through 74 schemes. Among these big names like Kotak MF, ICICI Prudential,

MF and Aditya Birla Sun Life Insurance, among others.

During the listing of Paytm’s parent company One97 Communications in November, only four local wealth management companies participated in the anchor book.

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According to people who attended the closed-door meeting, DII remain cautious about supporting startups.

“There is a sense of caution DII may have towards high-growth companies, as they are looking for predictability in business models and outcomes … However, they understand the age-old trend of investing in tech stocks. which can potentially create value in the near future 10-15 years, ”said one of the people who attended the meeting.

A clear example of this was in the participation in Nykaa’s anchor book, where of the total allocation to anchored investors, 70.98,801 shares or 33.33% of the total were allocated to 21 national mutual funds through 93 schemes. .

Unlike the venture capital community, which encourages pivots and high growth for a startup, DII focuses on the stability in execution of even some of the listed companies last year, said another person who met with asset managers.

The meeting comes at a time when shares of Indian tech companies listed last year, such as Zomato and Paytm, have plummeted. Shares of listed digital startups also fell globally, following inflationary pressures and rising interest rates.

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