Startups and Unicorns in India
IPOs and Exits
Investors get returns when a startup is sold or listed on the stock market, and India's IPO market opened up for new-age firms from 2021.
Investors need a way to cash out.
Exits
An exit can be an acquisition by a larger firm, or an initial public offering (IPO).
New-age IPOs
Zomato, Nykaa, Paytm and others listed in 2021, opening a new chapter for startup investing.
Mixed results
Some shares rose and others fell, as with Paytm’s weak debut.
SME platforms
Smaller companies can list on special exchanges for small and medium firms.
Cashing out
Early investors sell shares after a listing and return money to their own backers.
Assuming listing ensures a rising share price
Many listed startups trade below their offer price for a time.
Key takeaways
- Exits return money to investors.
- Acquisitions and IPOs are common.
- 2021 saw new-age IPOs.
- Share prices can fall.
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