homemarket News58% of founders prefer IPO in India; 75% of founders expect funding environment to improve in 2022: InnoVen Report

58% of founders prefer IPO in India; 75% of founders expect funding environment to improve in 2022: InnoVen Report

Encouraged by successful IPOs in India, notably Zomato and Nykaa, the majority of startup founders (58 percent) consider IPO listing in India as the most preferred exit option. Further, 71 percent of founders believe that IPO is the likely mode of exit for their investors, the findings showed.

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By Aishwarya Anand  Jan 21, 2022 2:29:50 PM IST (Updated)

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58% of founders prefer IPO in India; 75% of founders expect funding environment to improve in 2022: InnoVen Report
In 2021, 84% of founders had a positive fundraising experience (92% of all founders that attempted to raise capital) in the year, according to InnoVen Capital’s India Startup Outlook Report 2022.

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The favourable fundraising experience was significantly higher than 2020 when only 54% of founders had a favourable experience. An overwhelming, 75% of founders believe that the fundraising environment will improve further in 2022, the report added.
The study found that the majority of the founders chose growth over profitability, with 83 percent of them choosing growth as their focus area. 20% of startups surveyed claim to be EBITDA profitable, while 51% aim to turn EBITDA profitable in the next 2 years.
And as more startups come in, employment is expected to be higher in 2022 with FinTech, D2C, AgriTech and HealthTech hiring the most.
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Encouraged by successful IPOs in India, notably Zomato and Nykaa, the majority of startup founders (58 percent) consider IPO listing in India as the most preferred exit option. Further, 71 percent of founders believe that IPO is the likely mode of exit for their investors, the findings showed. Out of all the sectors, AgriTech and Logistics start-ups are most keen to do an IPO in India over other exit options.
Gender disparity across the Indian startup ecosystem narrowed only a little in 2021. The report showed that about 70% of startups in the country have less than 20% women in leadership roles, compared to 77% in 2020, while about 41% of startups have less than 10% of women in leadership roles.
Further, in the over-hyped category, Quick Commerce topped the list while Healthtech was chosen as the most under-hyped sector. Meanwhile, founders chose Zerodha as their most favorite Indian start-up, the second year in a row and Zomato’s Deepinder Goyal was chosen as the favorite founder.

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