{"id":190441,"date":"2025-06-17T01:38:10","date_gmt":"2025-06-17T01:38:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/190441\/"},"modified":"2025-06-17T01:38:10","modified_gmt":"2025-06-17T01:38:10","slug":"next-wave-of-internet-ipos-to-ride-on-profitability-not-hype-bofa","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/190441\/","title":{"rendered":"Next Wave Of Internet IPOs To Ride On Profitability, Not Hype: BofA"},"content":{"rendered":"<p>India is now the world&#8217;s third-largest tech maiden offering hub, trailing only the US and China, according to BofA Securities&#8217; latest report. After extensive ground checks, investor meetings, and city visits, the brokerage says it remains bullish on India&#8217;s internet sector, retaining &#8216;buy&#8217; ratings on MakeMyTrip, Info Edge, and FirstCry.<\/p>\n<p><strong>BofA&#8217;s report classifies India&#8217;s digital listings into three cohorts:<\/strong><\/p>\n<p><strong>Cohort 1<\/strong> (2021\u201322): The early birds like Zomato, Nykaa, and PB Fintech. These companies went public when liquidity was flush and investor benchmarks were absent. Most were loss-making, but they&#8217;ve since set the tone for what success or failure looks like in public markets. The group collectively holds a market cap of $56 billion.<\/p>\n<p><strong>Cohort 2<\/strong> (2024): These companies (like Swiggy, FirstCry, Ixigo, and MobiKwik) had benchmarks to live up to but launched in a tougher macro environment. Most are trading below their IPO or last private round valuations. For example:<\/p>\n<ul>\n<li>\n<p><strong>FirstCry<\/strong>: Valuation down 16%.<\/p>\n<\/li>\n<li>\n<p><strong>Swiggy<\/strong>: Down 4%.<\/p>\n<\/li>\n<li>\n<p><strong>MobiKwik<\/strong>: Down a steep 72%.<\/p>\n<\/li>\n<li>\n<p>On the flip side, <strong>Ixigo and TBO Tek<\/strong> have gained over 100% since IPO.<\/p>\n<\/li>\n<\/ul>\n<p><strong>Cohort 3<\/strong> (Coming soon): The next-gen players have learnt that profitability is no longer optional. Public markets are no longer rewarding just growth; they&#8217;re demanding cash flow visibility, says BofA. These companies are likely to be valued on 2-year forward EV\/Ebitda or P\/E ratios.<\/p>\n","protected":false},"excerpt":{"rendered":"India is now the world&#8217;s third-largest tech maiden offering hub, trailing only the US and China, according to&hellip;\n","protected":false},"author":2,"featured_media":190442,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3161],"tags":[3082,23703,53,16,15],"class_list":{"0":"post-190441","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-internet","8":"tag-internet","9":"tag-ipos","10":"tag-technology","11":"tag-uk","12":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114696153154719945","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/190441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=190441"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/190441\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/190442"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=190441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=190441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=190441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}