India set for stronger tech, media & telecom IPOs as China falters

While new regulations have severely hit China in the global tech, media & telecom (TMT) IPO market, the Indian TMT IPO pipeline is getting stronger and will continue to gain prominence this year, a new report showed on Friday. Between 2018 and 2020, there were 15 TMT IPOs in India. Last year alone, 15 Indian TMT companies went public and raised a total proceeds of $4.8 billion, reveals data and analytics company GlobalData.

While new regulations have severely hit China in the global tech, media & telecom (TMT) IPO market, the Indian TMT IPO pipeline is getting stronger and will continue to gain prominence this year, a new report showed on Friday.

Between 2018 and 2020, there were 15 TMT IPOs in India. Last year alone, 15 Indian TMT companies went public and raised a total proceeds of $4.8 billion, reveals data and analytics company GlobalData.

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"Consumer-facing tech companies are the biggest beneficiaries of the increasing digital adoption in India. As a result, e-commerce and fintech were the top themes driving TMT IPOs in 2021," said Swati Verma, Associate Project Manager of Thematic Research at GlobalData.

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In 2021, listings were centred around Internet-driven themes like e-commerce and fintech.

These themes will continue to gain prominence as digital adoption in the country further gathers momentum and eventually result in more successful listings in 2022.

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Paytm's listing in November 2021 was the biggest TMT IPO ever in India, when it raised proceeds of $2.5 billion.

"Aptus Value Housing (Loan solutions), Mobikwik (digital payments), Naapbooks (fintech solution), and Policybazaar (insuretech) were the other notable fintech players that went public in 2021," said Verma.

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Zomato's IPO, raising $1.3 billion, was the second biggest listing during the year.


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CarTrade (online car selling platform), Easy Trip (online ticket booking) and Nykaa (online beauty & wellness) were the other e-commerce companies which went public last year.

PharmEasy (healthtech), Delhivery (e-commerce), Oyo Rooms (online hotel booking), and Tracxn (big data) have all filed for IPOs.

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Other big IPOs expected on the Indian exchanges include Ola Cabs (ride sharing) and Swiggy (online food delivery).

"Walmart-owned e-commerce player Flipkart, for example, is preparing for a listing in the US. Edtech major Byju's also plans to list in the US by merging with a special purpose acquisition company (SPAC)," said Verma.

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Meanwhile, in China, regulatory crackdown shrunk the country's share in the global tech, media and Telecom (TMT) IPO market by 9 per cent last year.

China's regulatory onslaught has negatively impacted the tech TMT IPO market as the regulators created headwinds for companies wanting to go public in the country.

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Newly imposed rules require Chinese companies to comply with a set of national laws and regulations and to ensure data security.

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