The risk with all the high growth B2C tech IPOs coming up is growth plateauing. Growth is usually a function of agility & product bets. Since these companies take more bets & are more agile & aggressive than traditional businesses, they grow faster (Zerodha as well).

The question then, will the ability of these companies to be agile (reason for growth) reduce because of all the scrutiny that comes by being publicly listed? US companies have managed this pressure well. But it is a more mature market. Need to see how this plays out in India.

We’re in a world where no valuation seems too high as long as there is growth & a large addressable market. If you were old school & looked at revenues & profits, you would have missed out on some of the best public (US) & private companies (US & India), in the last decade.

The other interesting question that will also get answered: Will Indian consumers becoming shareholders of the brands they use increase brand loyalty? Will it maybe reduce the cost of acquisition (CAC), one of the biggest expenses for these businesses? I guess we’ll see.

View on Twitter →