All eyes are on India’s smartest Zomato

Relevance is often tied to rarity. As a result, the first everything — be it a birthday, a scientific achievement, or a female vice president — comes with its own weight. Whether that pressure is justified is a debate in itself, but today we’ll focus on the ripple effects of the Indian first unicorn IPO: Zomato.

Zomato, the food delivery startup, which will begin trading public shares next week, has been labeled by journalists and industry experts as India’s largest tech public offering to date. The company could be valued at up to $8.6 billion upon its public debut, and early signs of investor interest were strong.

If my colleagues Alex Wilhelm and Anna Heim put it in their column, the final performance of Zomato being viewed by Paytm and MobiKwik, two Indian fintech unicorns that also want to go public soon, the approximately 100 Indian unicorns, and of course return-oriented venture capitalists. The success of the startup can lead to more venture capital, exits on the road, and in general, a milestone for growth investment amid legislative and regulatory voltage.

While the pressure on Zomato is great not to be crushed by the public markets, it is not simply groundless, anticipatory energy. Our reporter on site Manish Singh has reported religiously on all the signs India has built towards this event, from the start-up fundraising frenzy to how engineers suddenly feel empowered to charge more money thanks to an increase in demand.

Zomato’s success may lead to more investors paying attention to the startup scene, but they will catch up: Indian startups raised a record $10.46 billion in the first half of 2021, compared to $4 billion in the first half of 2021. same period last year, and $5.4 billion in the first half of 2019, data insight platform Tracxn told TechCrunch. By comparison, Indian startups had raised $11.6 billion in all of 2020.

The takeaway here, both in life and startups, is that the first something is rarely the result of a single decision. Often, if you look closely, a huge milestone is due to an amalgamation of several wins, successes, failures, and smaller milestones along the way. This doesn’t take away from its title as the largest tech startup to go public in India (relevant and rare!) but it does suggest that ripple effects are not just a side effect of a funding event, but perhaps the impulse IPO in the first place.

In the rest of this newsletter, we’ll cover trends in emerging fund managers, as well as advice on funding rounds that has nothing to do with closing a round. You can find me on Twitter @nmasc_ or listen to me as a co-host on Equity.

Originate, then converge

unicorn

Image Credits: Bryce Durbin/TechCrunch

The clip of closed funds led by diverse, emerging fund managers are unlike anything I’ve seen before. In the past week, Female Founders Fund closed $57 million for Fund III, Nasir Quadree announced one of the largest solo GP funds, Peter Boyce II approaching $40 million for Stellation Capital and H Ventures has raised a $10 million debut fund.

Here’s what you need to know: More and more established venture firms turn to emerging managers for deal flow, and frankly, new partners, according to my colleague Connie Loizos. This week Initialized Partner was awarded Singh’s hair from Founder Collective, making her a new partner at the company. Do not expect the trend to slow down any time soon.

Your financing round is not special, but you might be

Directly above shot of question marks on colorful papers on the table

Directly above shot of question marks on colorful papers on the table

Image Credits: Mohd Hafiez Mohd Razali/EyeEm (Opens in a new window)

It may be easier to fundraise than to secure fundraising coverage. As we in our recent Equity podcast, featuring Forbes Senior Editor Alex Konrad as special guest, the bar for “the funding round story” has never been higher.

Here’s what you need to know: To stand out, founders need to be transparent about competition, their industry, and leave those godforsaken pre-approved quotes and talking points. We go into specific advice about the show, and how a narcotic effect can harm historically overlooked individuals.

For more fundraising advice:

Around TC

  • The TechCrunch Disrupt Agenda just went live. It’s a lineup to read and an event to attend.

  • Have you ever taken a cohort-based course from an edtech platform? I’m writing a story, so email me if you’re open to talking about your experience.

  • shout at Christine Hall for recently joining the TechCrunch team. Follow her on Twitter. I will wait!

During the week

Seen on TechCrunch

Seen on Extra Crunch

Thanks for joining in, everyone. Have a nice weekend, and if you liked this newsletter, please share it with at least one friend!

No