SoftBank-Backed Fintech Raises $761M in India IPO. Next Comes the challenging Part
The 13-year-old startup upheld by SoftBank Group Corp. and Tiger Global Management faces heated rivalry from local and worldwide players in the two of its working sections — insurance and lending. However, rivals such as Amazon.com Inc. and Alphabet Inc.’s Google would only encourage it to improve both of its portals, Policybazaar and Paisabazaar, according to Dahiya. PB Fintech surged another 14% on Tuesday.
“Investors are esteeming new age web organizations like our own not for what we are today but rather for what we could become,” he said. “We must take our organizations to that future,” Dahiya, son of a previous defense services officer, said in a meeting.
PB Fintech is one of a slew of Indian IT startups that have rushed to the public markets and seen their stock prices rise as investors stepped in to buy shares during an exceptional rally in the Indian stock market.
On the first exchanging day, the share closed at 1,202.30 rupees in Mumbai, a 22.7% addition from its issue cost of 980 rupees, the top end of the demonstrative IPO range, days after investors bid for almost multiple times the shares on sale.
Three Dozen Unicorns
This year, global investors have poured billions of dollars into India’s internet businesses, resulting in the creation of more than three dozen unicorns (privately held companies valued at $1 billion or more), far surpassing prior years. Dozens of them are preparing to go public, following in the footsteps of food delivery firm Zomato Ltd., which saw its valuation double after its IPO in July, and cosmetics store Nykaa, which rocketed 96 percent on its initial public offering last week.
What entrepreneurs and teams need to understand is that “the money doesn’t belong to us,” Dahiya said over the phone from Mumbai after ringing the stock exchange’s opening bell. “There is no dearth of finance; it no longer serves as a deterrent to entrepreneurs,” as the rush of investments and positive public market reaction to the IPOs demonstrated that entrepreneurs required a vision and the capacity to execute.