shares of Policybazaar Indiaparent company of PB
IPO soared by more than 20% in value At its stock market debut on Monday. The stock listed at a premium of 17.35% on the BSE and touched an all-time high of Rs 1,249 before ending the day at Rs 1,202.90, up 22.74% from the issue price. This gave the company a market capitalization of Rs 54,070.33 crore.

While this represents another stellar list for Policybazaar, an Indian tech startup, Paytm And other IPO-bound fintech firms in India will have an eye on their counterparts in the US. This is because some of these US fintech companies, which were embraced by private investors, have seen weak trading in the public market.

of 15 US fintech companies operating initial public offerings ,IPOFrom January 2020, eight were trading below their listing prices as of November 15, according to data compiled by ET, indicating a potential disconnect between enthusiastic private equity and venture capital investors and more measured portfolio managers and traders.

As a result, enthusiasm among other US fintech firms planning listings has cooled. “We’ve seen companies that several months ago were aggressively thinking about going down IPOs or [special purpose acquisition company] Way, and they put those plans on hold given the coolness of that market,” Kegan Green, director of Houlihan Loki’s data and analytics group, told S&P Global.

Five out of 15 US fintech companies are trading well above their listing prices. These are: Upstart Holdings, Nuwei Corp, Shift4 Payments, Affirm Holdings and Flywire Corp. Two others — Coinbase and Robinhood — are trading flat, while eight out of 15 are trading anywhere from 5.9% to 79.2% below their listing price. Even some of them that are trading above their listing price have “definitely outperformed” the benchmark, Joseph Schuster, founder of IPOX Schuster, told S&P Global.

Will Indian companies buck the trend?

Can PB Fintech, Paytm, MobiKwik and other Indian Fintechs startup Will mirror or buck this trend remains to be seen. While PB Fintech’s IPO was extremely successful,
Paytm did not live up to the expectations, MobiKwik is yet to launch its IPO.

in july we
informed of, citing experts, that IPO-bound fintech startups in India were prepared to face unique challenges, such as building public confidence around their revenue models, reducing foreign ownership, and being faced by multiple regulators in the financial sector. Working around tighter scrutiny prior to their public offering. , Another issue is of China. “For Indian fintechs with Chinese funding, it is becoming extremely difficult to raise private capital after the government’s latest FDI rules last year,” said an industry insider.