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Blockbuster debut of Zomato is pushing more new age digital companies to expedite their IPO plans. Now Nykaa and PolicyBazaar are all set to hit the street to take advantage of the ‘hungry for more’ investors who are brimming with high liquidity currently.
News reports suggest that online cosmetics retailer, Nykaa, which plans to raise Rs 5,000 crore, is likely to file its draft red herring prospectus (DRHP) by the weekend whereas insurance aggregator Policybazaar is expected to file its DRHP next week for about Rs 6,500-crore IPO.
Nykaa, founded by former investment banker, Falguni Nayar, is aiming for a valuation of $4 billion which would translate to about Rs 30,000 crore. The company has grown into India’s top destination for beauty products with its own chain of physical outlets.
On the other hand, PB Fintech, the parent company of online insurance marketplace Policybazaar had received approval for IPO at the Extraordinary General Meeting (EGM) held on July 5. There are reports that the IPO will include both fresh issue and offer for sale from PB’s existing investors. PolicyBazaar collects nearly 50% of its revenues from insurance companies for providing outsourced services such as customer processing. Such revenues grew by 69.2% to Rs 256.8 crore in FY20. However, it posted a loss of Rs 218.2 crore in FY20.
Yashish Dahiya, Co-Founder and CEO of PolicyBazaar.com had earlier this year spoken to Money9 on the upcoming IPO and said, “We wish the IPO can create huge amount of wealth for shareholders and investors”. The IPO and listing are likely by year-end.
For InfoEdge, which is a common and significant early investor in both Zomato and PolicyBazaar, the IPO will be its second opportunity this quarter to unlock its investment into a successful internet investment. As per the reports, investment bankers to oversee the compliance process and is targeting a valuation of $4-5 billion.
TPG, Fidelity and Hero Group Chairman, Sunil Kant Munjal on the other hand are some of the investors in Nykaa. In fact, Nykaa is among the very few profitable e-tailers in the country. The company posted an EBITDA (operating profit) of Rs 80 crore in FY20.
While there are no official comments from the companies on the timelines of them filing the DRHP, industry waters expect it be just around the corner.