Amid the surge in IPO activity and a broader stock market rally, domestic mutual funds have significantly increased their investments in new-age startups, holding over $8 billion (approximately Rs 69,000 crore) across 12 companies. This growing stake highlights the increasing role of institutional investors during pre-IPO rounds, according to industry experts.
These mutual funds, including names like ICICI Prudential, Axis Mutual Fund, Kotak Mutual Fund, HDFC Mutual Fund, Nippon Mutual Fund, Invesco India, and Mirae Asset Mutual Fund, now have shares in companies such as Zomato, Paytm, PB Fintech, Nykaa, Delhivery, and Mamaearth. This heightened exposure comes from the rising valuations of these companies and their recent public listings.
A year ago, mutual funds held about $2.7 billion in six new-age companies. Now, with an expanding list of publicly traded startups and the rise in stock prices of firms like Zomato and PB Fintech, their exposure has grown to a dozen companies.
The year 2024 has already seen six startups go public, including Go Digit General Insurance, Ixigo, Awfis, Unicommerce, Ola Electric, and FirstCry. Upcoming IPOs from startups like Swiggy, Mobikwik, Ather Energy, Blackbuck, and Ecom Express suggest this trend will continue as more companies tap into public markets.