The NSE has set its eyes on getting a few mature start-ups to list on its platform in the next couple of year. With the objective of attracting start-ups, it held its first ‘NSE Tech Conclave’ in Bengaluru on Tuesday.
“The start-up ecosystem has matured in the last five years and growth is mainly being financed by venture capitalists (VCs) and private equity (PE) funds,” said Vikram Limaye, MD & CEO, NSE.
“Now public markets are being considered for exists but very few have taken this path. Through such conclaves, we want to highlight that stock exchanges can be a good platform to support new-age companies for their growth capital,” he added.
There are approximately 1,400 VC/PE-backed companies in India. “I hope the start-up ecosystem will view the Indian capital markets as an important funding source,” the NSE chief said. “Companies have wider market access through public float. This will help them chart the next phase of their growth story. The NSE is committed to enabling these companies evaluate public market platforms. We will also provide the right tools to prepare these companies for their life as listed entities,” he added.
The year 2017 has been an exceptional year for the primary markets. Companies have raised over ₹67,000 crore. Of this almost 70 per cent or ₹45,000 crore were in the form of PE exits.
New-age sectors
“During the listing this year we also saw an interesting mix of new-age sectors and niche companies such as e-commerce, food technology, energy exchange and security services, accessing public markets. Investors have been very receptive as most of the issues were oversubscribed,” explained Limaye.
The conclave addressed the opportunities and challenges that these new-age tech companies may face in getting listed in India.
The NSE Tech Conclave is the beginning of a new relationship between the capital markets and the start-up ecosystem. Limaye said, “We chose Bengaluru since the city has nurtured many innovators and entrepreneurs and is home to over 2,000 active start-ups. These companies are not just growing at breakneck speed, but are also redefining how products and services are consumed.”
“Going forward, I see enormous growth potential in start-ups, driven by favourable government policies. The Start-up India initiative will create a conducive environment for bright, resourceful individuals to become successful entrepreneurs,” he added.
Phenomenal growth
The tech start-up ecosystem in the last 10 years has witnessed phenomenal progress. “We all saw the rise of unicorns and growth of several start-ups, with a total market valuation of over $40 billion. There growth charts and numbers are exciting even for Indian investors,” Limaye said.
“These investors have been largely isolated from the wealth creation opportunities that start-ups provide. The investment opportunities are currently available largely to foreign investors,” he explained.