After raking in nearly $2 billion in profits from the initial public offering (IPO) of Indian food delivery firm Swiggy, Dutch technology investor Prosus expects five of its portfolio companies in the South Asian nation to hit the bourse in the next 18 months.
Among the companies expected to go public, Prosus mentioned digital payments and lending firm PayU, online marketplace Meesho and jewellery retailer Bluestone.
The investment firm also mentioned edtech firm Eruditus, meat delivery firm Captain Fresh, Mintifi, Vastu Housing Finance and Mensa Brands as the companies that have the potential for an IPO in the future.
Prosus announcement comes as an unbridled optimism in Indian equities this year has triggered a wave of IPOs, providing company promoters as well as private equity and venture capital investors a window of opportunity to cash out through public market sales.
In the first nine months of the calendar year (Q1-Q3), 258 IPOs on BSE Ltd. and the National Stock Exchange of India (NSE Ltd) raised a combined $9.4 billion, according to the EY Global IPO Trends: Q3 2024 report. The IPO volume was up 73% compared with Jan-Sept 2023, while the IPO proceeds more than doubled in the period.
Prosus-backed Swiggy’s shares debuted on Nov. 13 on the bourses at Rs 420 per share—an 8% premium over its issue price of Rs 390. The scrip logged an impressive 19% gain by the end of the day and closed at Rs 464 per share on the National Stock Exchange (NSE), valuing the company at $12.1 billion.
Prosus, which is controlled by South Africa’s Naspers, still holds a 25% stake in Swiggy. The stock closed at Rs 500.95 on Monday.
Prosus has been sharpening its focus on India. According to media reports, Prosus and Naspers CEO Fabricio Bloisi said, “We are very excited about India. We started investing in India seven years ago, much before everyone was talking about the country’s potential. We made a good call to make India our priority and the Swiggy IPO is just the first big result, we have many more ahead,” Prosus and Naspers CEO Fabricio Bloisi told reporters in a call after announcing the company’s earnings.
Its two latest bets of $180 million include India-based supply chain financing platform Mintifi and Vastu Housing Financing.
Prosus made an investment of $80 million in the supply chain finance fintech Mintifi, which diluted a 10.65% stake.
Other investors in Mintifi include VC firm Norwest Venture Partners, India-focused VC Elevation Capital and the World Bank’s International Finance Corporation, Premji Invest.
Founded in 2017, Mintifi closely works with over 100 leading brands across India, including Tata Motors and Jockey among others, to unlock their supply chain by digitizing payments, invoicing and purchase. Last year, the firm raised $110 million in a Series D funding round led by Premji Invest.
Prosus also acquired an 8.4% effective (7.8% fully diluted) interest for about $100 million in Vastu Housing Financing, the investment firm said in its half-yearly filing.
Headquartered in Mumbai, Vastu provides affordable housing finance to lower- and middle-income segments and loans against properties to micro, small, and medium enterprises (MSMEs) in India. In July, US-based private equity firm TA Associates also made an undisclosed investment in Vastu Housing Finance.
