Self-drive rental startup Drivezy’s ambition to go for an IPO in next one or two years has been doing rounds for couple of weeks now. But the latest information emanating from business daily Mint is that the company is amending its IPO plan.
As per this amended plan, Drivezy may skip the Indian markets and can settle for Japanese or American market for its IPO listing
Ankur Sengupta, who handles business development for Drivezy, informed Mint that the company prefers Tokyo stock exchange or New York Stock Exchange because most of its investors are from US and Japan. He also added that existing Indian laws do not permit loss making companies to sell their shares to general public.
Sengupta did not give exact timeline about when the company plans to go for a public issue but grapevines claim that the IPO plan may materialize within the span of next two years.
Bengaluru based self-drive rental company is also reportedly in talks with Japanese auto giant Yamaha to raise $30 Mn. According to reports, the fund-raising negotiations have now reached advanced stage.
Meanwhile, several big Indian startups are now gearing up for the IPO.
Drivezy joins long list of Indian startups that are vying to list themselves in the capital market. This includes unicorn startups like Oyo, Paytm, Ola, Freshworks and Druva.
IPO is immensely rare for Indian startups but is now the preferred exit mode especially for high profile investors like SoftBank, Tiger Global and Sequoia.
Even more rare for Indian startups is to list its stocks in international markets. MakeMyTrip and Kaleyra are probably the only Indian startups that are currently listed in international markets – namely NYSE.
But it is important for Indian startups to Take cue from Uber’s lackluster IPO and WeWork’s IPO debacle and ensure that their public listing does result in profitable exit for investors.