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Ola, Oyo, other unicorn startups to go public in couple of years: Sources

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Startup unicorns such as Freshworks, Ola and Oyo, among many are planning to go public in the next couple of years, reported Mint, citing two people aware of the development.

As per the sources, the news comes amid some of the world’s top tech startups including ride-hailing companies Uber and Lyft experiencing disappointing debuts on stock exchanges.

“There is going to be a spate of IPOs starting two years from now. Globally, capital is slowly starting to dry up—as that changes, entrepreneurs will realize that it is important to opt for an IPO even as a source of funding,” said Niren Shah, managing director at Norwest Venture Partners, India.

“Moreover, venture capitalists are seeking exits which don’t come that easily through a merger and acquisition, which is why IPOs would become a way for investors to exit,” Shah.

The sources said that the carelessly WeWork IPO and the underwhelming investor response to Uber and Lyft’s share sales have sowed doubts among investors about the lofty valuations assigned to these startups and could potentially threaten the IPO prospects of their Indian counterparts.

While, some say Indian startups declaring their intention to go public has more to do with their investors seeking exits.

Furthermore, Cab hailing firm Ola recently raised 35.9 crore in funding from investment fund ARK Ola Pre-IPO Private Investment Trust.

Ola, which has kept its bigger investor SoftBank at bay and has been raising tranches of funds from other investors, could be looking at an IPO as a source of funding.

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