The age of unicorns is just starting to get warm and 15 to 20 unicorns in the internet sector with “solid models and teams” will be ready to hit the markets with their public issuances in the next 12-24 months, according to Kotak Investment Banking.

During the period, the segment will also see 20 to 30 mid to large mergers and acquisitions either pre or post IPO.

In an interaction with the media, officials at the investment bank said that the “funding winter” which dominated headlines last year for many of the new-age companies, will end by the close of 2024 with a return of dynamism in the public markets fuelled by robust equity returns.

Around $10 billion worth of new equity will be raised through IPOs by the new age companies and another $10 billion of follow-on block deals or exits will be seen, in the next 1 to 2 years. Over ten internet decacorns will emerge by 2025-end and at least two to three large conglomerates will be established.

“Large internet IPOs will set the ball rolling,” an official said.

While internet and new-age companies were largely fuelled by growth metrics rather than profitability in the recent past, this is quickly changing. Some of the winners in the segment are commerce, B2B commerce, B2B fintech platforms and digital lenders. BlinkIt, FirstCry Lenskart and Meesho are companies that are making operating profits.

Internet companies are expected to catalyse deal making across the board in the next two years.