Mumbai: Alex Clavel, co-CEO of SoftBank Investment Advisers, has ranked India as the world’s best-performing IPO market in 2024. In a recent discussion with The Economic Times, Clavel explained that India has seen more public listings this year than other regions, including the US, which has experienced fewer IPOs, even outside the tech sector.
Clavel, who has led SoftBank Vision Fund II (SVF-II) since last year, shared that India’s capital markets have matured significantly. This has provided more liquidity for companies to go public, reducing the reliance on foreign markets like Hong Kong and the US. SoftBank’s portfolio companies such as FirstCry, Ola Electric, and Unicommerce went public this year, with Swiggy’s ₹1.25 billion IPO also planned for November.
According to data from Prime Database, 64 companies raised a total of ₹92,645 crore through IPOs in 2024, making it the second-largest fundraising year in India after 2021.
Opportunities in India’s Market
Clavel mentioned that early concerns about India’s capital markets being too small have been addressed through progressive market regulations, which have boosted domestic liquidity. As a result, many founders in India now prefer to take their companies public rather than seeking late-stage private funding, avoiding time delays and share dilution.
SoftBank has been one of the largest investors in India’s digital economy, investing ₹11 billion through Vision Fund-I and II. If you include SoftBank’s partnership capital, the total rises to ₹14 billion. Clavel emphasized that these investments are driven by confidence in the Indian market and its stability.
Global IPO Comparisons
While India’s IPO market thrives, the US has seen less activity. Clavel noted that despite hopes for a boost following Arm Holdings’ IPO on Nasdaq, other public offerings in the US have been limited due to factors like rising interest rates, political uncertainties, and geopolitical concerns.
SoftBank’s history of investments in India includes cash returns of $7.5 billion from its sale of Flipkart to Walmart in 2018 and exits from companies like Paytm and Policybazaar. However, Clavel clarified that there’s no pressure on SoftBank to push companies public; the decision to go public is based on individual company performance and market conditions.
In all, Clavel remains optimistic about the opportunities in India, particularly in sectors like food delivery and quick commerce, where SoftBank portfolio company Swiggy has a strong market position.
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