Dutch technology investor Prosus has revealed a strong pipeline of potential IPO candidates from its Indian portfolio, which includes Meesho, BlueStone, PayU and Urban Company. The companies are expected to go public over the next 18 months.
The announcement, a part of H1FY25 disclosures, shows that India is a critical market for the global investment firm, which has invested over $8 billion in the country, so far, Prosus and Naspers chief executive officer Fabricio Bloisi told mediapersons on December 2 in a call after announcing the results.
"We are very excited about India. We started investing in India seven years ago, much before everyone was talking about the country’s potential. We made a good call to make India our priority and Swiggy IPO is just a first big result, we have many more ahead," Bloisi said.
Prosus is also looking at taking its other portfolio firms, including Captain Fresh, Mintifi, Vastu Housing Finance, Mensa Brands and Eruditus, public, showcasing its confidence in India’s evolving startup ecosystem.
“We have around 30 investments in India and have many more IPOs ahead over the next 1.5 years. We started at the right time. Our ecosystem in India is unique. Our companies here help each other grow faster, and we see immense potential to crystallize value over the coming years,” Bloisi said, stressing on Prosus’ ecosystem-focused approach.
The Dutch investor said it invested $80 million in supply-chain financing company Mintifi and $100 million in Vastu Housing Finance, expanding its bet on financial services beyond PayU India.
A mixed bag
The move follows a mixed performance of its India portfolio. PharmEasy, an online pharmacy startup, continues to be a drag, with a negative internal rate of return (IRR) of -38 percent.
ElasticRun, a B2B e-commerce platform, emerged as the highest-performing asset with a 23 percent IRR.
Meesho and PayU saw declines. Meesho dropped from 32 percent in the year-ago period to 21 percent and PayU from 30 percent to 21 percent, reflecting the shifting market conditions and the evolving dynamics within Prosus’ portfolio.
Swiggy, valued at $11.3 billion, remains the cornerstone of Prosus’ portfolio and a key win of its IPO strategy.
"With Swiggy’s recent IPO, and by actively managing our portfolio through equity stake sales, we’ve highlighted significant pools of value and we’re confident there’s even more ahead,” said Ervin Tup, president and CIO, Prosus and Naspers. “With our strong and liquid balance sheet, we plan to grow and leverage our ecosystem, with an eye on the next wave of opportunity.”
Also read: Swiggy revenue jumps 40% to Rs 6,300 crore in H1FY25, says Prosus
Prosus has also recorded setbacks in its investment in embattled edtech firm Byju’s, marking down the value of its shareholding in the company to zero earlier this year and recording a fair value loss of $493 million.
In contrast, its foodtech bet on Swiggy has thrived, delivering consistent growth and contributing to Prosus' long-term IPO ambitions.
"We are focused on finding promising founders and businesses that align with our strategy. Larger investments will depend on how the market evolves," Bloisi said.
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