“Indian Startups Not Overpriced, Will Dwarf Many Others”: Paytm Founder
According to the founder of the Indian online payments pioneer that raised cash in the country’s largest initial public offering ever, the wave of skyrocketing valuations for India’s technology companies is here to stay because the country presents a significant opportunity in terms of growth. Indian businesses aren’t overvalued, and “many are underestimating what India’s opportunity will be,” according to Vijay Shekhar Sharma, the founder and CEO of Paytm, which raised $2.5 billion in its IPO this week.”If anything that has happened in the United States, China, or other parts of the world, including Indonesia, India has an opportunity that will dwarf many other countries’ startup or technology ecosystems,” he said Thursday at the Bloomberg India Economic Forum.
According to researcher Tracxn, investors have put $7.6 billion into Indian fintech businesses, roughly four times the amount their Chinese competitors received. Other digital businesses, such as FSN E-Commerce Ventures Ltd., which runs the Indian cosmetics startup Nykaa, and food delivery app Zomato Ltd., have witnessed a surge in demand for their stock.
Hundreds of companies, including Alphabet Inc.’s Google, Walmart’s Phonepe, and Amazon.com Inc., are flocking to India’s fintech area, resulting in a world-beating digital payments rush. In the last five years, digital payments have grown fivefold and are expected to reach $2.2 trillion by March 2023, while digital loans are expected to triple to $350 billion. The Indian fintech industry’s rapid expansion threatens regulatory repercussions.Providing clarity on rules, facilitating easy exit for funds from start-ups, establishing a local pool of cash from investors, and avoiding retroactive taxation, according to Vani Kola, founder of early-stage venture capital firm Kalaari Capital, will further open the floodgates of money.
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