India’s tech sector has been booming for years, but it is only now that the growth is coming to fruition in the subcontinent’s capital markets. Many of the country’s most successful platform companies, like Zomato and Flipkart, and fintechs, like Paytm, are choosing to go public in 2021 and they are listing at home rather than on the NYSE or Nasdaq.
2021 will likely be remembered as the year that Asia’s fintech unicorns (ex-China) cashed out. India’s Paytm has become the latest high-flying fintech to cement its plans to go public, filing a draft prospectus with the Securities and Exchange Board of India (SEBI) for a deal expected to raise US$2.2 billion. The deal will be one of India’s largest of all time, including a fresh issue of US$1.1 billion and a secondary issue or offer for sale of the same size.
Paytm is the latest SoftBank-backed unicorn to head for the exit ramp. India’s most valuable startup is planning an IPO in the subcontinent later this year that will value the company at US$25 billion to US$30 billion and raise up to US$3 billion, according to Bloomberg. If the deal is successful, it may be the largest in India’s history.
India's Paytm hopes to follow in the footsteps of its key backer Ant Group and build a super app centered on financial services. In a market as large, diverse and fragmented as India's, it is unlikely any app could become a dominant as Alipay and WeChat are in China. However, "super" need not mean the app for everything, maybe just for most of one's digital banking needs. That's why Paytm is steadily adding new services. The latest one is stock trading, a fast-growing business in India.
The Securities and Exchange Board of India (SEBI) has introduced a number of measures recently in the capital and commodity markets to improve the quality of market infrastructure and the depth of trading that takes place. We will look at three examples of the recent changes being made by the SEBI here.
Anti-money laundering activities are taking the center stage in Indian financial markets. The recent crackdown on shell companies, and brokerages helping them, by the Securities and Exchange Board of India (SEBI) is part of a concerted effort by the Government to clean up the financial markets in India.
Government reforms have had contrasting effect on the securitization and corporate debt markets in India. Significant issues such as the high level of bad loans at public sector banks, bankruptcy laws which were not conducive to recovery of non-performing assets (NPAs), securitization of debt and the need to boost the corporate debt market, go hand in hand in India.
The Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia, having been founded in 1875. However, in recent years, it has become the number two equity exchange in India, after the National Stock Exchange (NSE).
The uncertainty over H1B visas in the US is taking a toll on Indian IT firms, most of which have heavy exposure to the US market in terms of both revenues and headcount.
The regulatory culture in the Asia-Pacific region shows a preference for incremental change being initiated in the markets by the regulators, as opposed to big bang measures. The manner in which the mainland Chinese markets have been slowly liberalized has been discussed in an earlier commentary. In this one, we look at the some of the upcoming changes being proposed in India and how they fit into the overall approach of the capital market regulator in the country.
The inauguration of the new India International Exchange (INX) on January 9, 2017 by India’s Prime Minister Modi in a new finance zone, the Gujarat International Finance Tec-City or GIFT city, heralds the possible beginning of a new era in offshore financial centers in Asia.
According to a report filed by a leading business daily in India, the Securities and Exchange Board of India (SEBI) has abandoned proposed regulations for the Indian crowd-funding industry. This is clearly a big boost for the fintech industry and in particular the P2P lending industry in India.
India's main regulator for capital markets, the Securities Exchange Board Of India (SEBI), has started implementing recommendations from the Special Investigation Team (SIT) appointed by Supreme Court of India to regulate Participatory-notes (P-notes).
After a lull in investments and a lacklustre IPO, the Indian ecommerce market is heating up once again. While China-based Alibaba had earlier invested in Snapdeal (ranked #2 in India by market share) and Paytm, it recently announced a direct foray into the Indian market, making the entire ecommerce sector sit up and take notice. Now Japan’s Rakuten seems set to follow suit into India.