How new-age startup IPOs performed in Q1 FY24

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How new-age startup IPOs performed in Q1 FY24
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• A dozen businesses have been listed on the
  bourses since 2021, when several Indian startups
  joined the initial public offering (IPO) frenzy.
  Entrackr has examined the most recent quarterly
  results of these cutting-edge startup initial
  public offerings to assess their financial
  stability.
• Profit making new-age startup IPOs in Q1 FY24

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• In 2021, Indian startups secured a record 38
  billion in VC funding, fostering a favorable
  ecosystem. Eight startups, including Zomato,
  Nazara Technologies, Nykaa, CarTrade, and
  EaseMyTrip, went public. In 2022, IPO momentum
  slowed with only Delhivery and Tracxn listing due
  to market challenges, as others like OYO, boAt,
  PharmEasy, and more postponed IPO plans. In 2023,
  only drone tech firm ideaForge successfully went
  public.
• In Q1 FY24, eight startups achieved
  profitability, notably Zomato turning profitable
  for the first time, following a Rs 188 crore loss
  in Q4 FY23. MapMyIndia led with Rs 32 crore
  profit, followed by EaseMyTrip, Nazara, CarTrade,
  and ideaForge. Nykaa reported Rs 5.4 crore
  profit, while Tracxn registered Rs 0.69 crore
  profit.
• Loss making new-age startup IPOs in Q1 FY24
• While Zomato and Nykaa thrived with substantial
  profits, major revenue earners like Paytm,
  Policybazaar, Delhivery, and Freshworks didn't
  attain profitability in Q1 FY24. Despite Paytm's
  2X loss increase to Rs 358.4 crore from the
  previous quarter, losses contracted by 44.5 from
  Q1 FY23.
• Policybazaar's losses rose to Rs 11.9 crore in Q1
  FY24 from Rs 9.37 crore in Q4 FY23. Delhivery and
  Freshworks improved loss control. Freshworks
  achieved adjusted operating profit in Q4 FY23,
  aiming for Q1 FY24 Policybazaar targets FY24
  profitability.

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• Current market price Vs IPO price
• Entrackr's chart shows the current market share
  prices compared to the IPO prices of various
  companies. Zomato, ideaForge, and MapMyIndia
  exceed IPO prices, while others trade lower. The
  downward trend may be reversing, suggesting
  improved market comprehension of their models.
  Zomato hit a 52-week high Paytm rose as CEO
  Vijay Shekhar Sharma agreed to buy 10.3 from Ant
  Financial.

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• The emergence of profits in startups can be
  perceived as a result of either public market
  discipline or a sign of maturity. While founders
  may not openly acknowledge potential lower
  growth, in a 6 growing economy, these firms
  have growth potential. Despite valuation setbacks
  for firms like Paytm and Freshworks, their
  recovery aids capital access for non-listed
  startups in a challenging market.
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