SaaS firm Unicommerce, which was not well-known until the IPO, has topped the most anticipated Ola Electric in terms of its IPO. Softbank backed Ola had a higher valuation and a larger issue size, but it did not invoke the kind of response Unicommerce did.
The comparison of two IPOs shows the change in tendencies of investors’ behavior as wedged by juxtaposed models. Instead of striving to become a unicorn, which can actually be a disadvantage, companies are turning to the next steps – profitability and solid fundamentals. Financials of Unicommerce was excellent and it posted a profit of Rs 13 crore and investors could relate to it and therefore oversubscribed the matter in a very huge way. However, Ola Electric’s loss report of Rs 1,584 crore suppressed the investors’ demand.
Such tendency can be considered as setting up a new bar for all start up companies who wishes to go public. You get the sense that sustainable growth and profitability are the keys to future success of IPOs. But at the same time, there are firms such as Unicommerce, which proves that the strong business model can bring exceptional outcomes.
