IPO Corner: Here's all the latest news from IPO-bound train of Indian startups

The Paytm slide post listing on Dalal Street is not good news for the category as a whole, according to Ashneer Grover, co-founder and MD of BharatPe.

Speaking in an interview with CNBC-TV18, the BharatPe MD said that it was sad to see the recent developments with the Paytm IPO as the steep fall has a wider implication on the sector and is "category killing".

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"I think the company simply seems to have not looked at where the market is, and just gone ahead and priced itself where it wanted to. So it is a cumulative failure of the management, and the bankers. You know, 40 percent, down on a $20 billion stock, which is supposed to be the poster child of the Indian startup – it is category killing,” said Grover.

Grover argued that the largest UPI player in the market is PhonePe and it is currently valued at $9 billion approximately. However, the Vijay Shekhar Sharma-led Paytm hit the market seeking a valuation of $20 billion.

"The largest UPI player PhonePe is valued at $9 billion. If Phonepe is valued at $9 billion, how can Paytm demand a $20 billion valuation?" he questioned. The BharatPe MD further said Paytm is seeing brand erosion and not just price erosion with this fall.

Another implication of the Paytm listing, according to Grover, will be that companies looking to list over the next 2-3 months will see a 'Paytm discount'.

"I expect IPO valuations to come down post Paytm listing. I don't expect the public market to honour the kind of premium seen in private markets," he explained.

Fintech startup Mobikwik may defer its plans to go public by a few months amid concerns about investors’ interest and skepticism about its business model following the regulator’s digital lending paper, multiple people aware of the matter confirmed to CNBC-TV18.

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Mobikwik, a smaller rival to firms like Paytm, had filed its papers for a Rs 1,900 crore initial public offering (IPO) in July. This included a fresh issue of Rs 1,500 crores and an offer for sale (OFS) for another Rs 400 crores. Market regulator SEBI had subsequently approved the IPO plans on October 7.

"The plan was first to hit the markets around Diwali, and then it (Mobikwik) also wanted to wait for the response to Paytm. Now it is unlikely to go ahead before January-February. It all depends on the markets now because the timing has to be right,” said a person involved directly in the matter on the condition of anonymity.

Paytm’s disappointing listing and continued underperformance since played a key role in the decision to defer the IPO plans. MobiKwik’s unlisted stock was exchanging at around Rs 1,350 before the launch of Paytm’s IPO. Since then, the unlisted share price has fallen to about Rs 900, almost 33 percent lower, as per reports.

Furniture marketplace Pepperfry has picked up another tranche of $10 million from eight investors in the form of compulsory convertible debentures (CCDs), Entrackr reported. This will be the second debt infusion in the company in 2021. In February, Venture debt firm InnoVen Capital had invested Rs 35 crore in Pepperfry.

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According to the report, Pepperfry has approved the issuance of 74348 CCD (Series A class) at a face value of Rs 10,000 each to raise around Rs 74 crore or close to $10 million.

Norwest Venture Partners, Broad Street Investments and Erste WV Guttersloh are the largest investors in this round with Rs 23.28 crore, Rs 18 crore and Rs 15 crore respectively. Panthera Growth Fund, General Electric Pension Trust and Madhumala Ventures have also joined this tranche, the report added.

According to a Mint report, Pepperfry is planning to file for an initial public offering (IPO) in the first half of 2022 and is likely to raise a pre-public round in the range of $50 to $100 million by the end of this year.