Start Up IPOs : Dichotomy for Investors

Indian start up ecosystem went past remarkable milestones in recent times

1. Overall funding crossed $100 Bn mark
2. 40 start ups turned unicorns
3. 11 Indian Start ups listed publicly through IPOs
4. Massive 833Mn active internet user base
5. Start up founded in 2012 or after took an average 5 years to turn unicorns

However the share prices of the major Listed Start up IPOs show contradictory picture.

Sustainable profitability is still a major sore point and investors are in dichotomy.

Investors, however, seem to buy in that start ups don't have traditional metrics of profit, but relevant ratios such as return on ad spend, price to sales ratio, supply chain penetration, scalability index should be mandated by SEBI for larger transparency and fair pricing.