The US$1.3 billion stock market listing of online food delivery company Zomato on Friday highlighted the galloping emergence of India’s unicorns, or start-up companies with valuations of over US$1 billion.
International investors are warming to India’s increasingly start-up-friendly policies and huge market, particularly after getting their fingers burnt by China’s clampdown on high-tech corporations, not least Beijing’s squeeze on ride-hailing app Didi Global after it recently listed on the New York Stock Exchange.
Zomato’s initial public offering (IPO), India’s first internet unicorn to list, was oversubscribed more than 38 times when it made its Bombay Stock Exchange (BSE) debut, gaining more than 51% on its IPO price of 76 rupees (US$1.02).
The massive oversubscription and high listing price clearly showed the growing interest of entrepreneurs and investors in Indian unicorns, a new buzzword in the country, which has seen rapid and steady growth in recent years.