India’s 100th Unicorn, Droom’s Altered IPO Plans, Sequoia’s Wake Up Call, and More
Aggarwal, who also founded online retailer ShopClues, said plans for the IPO have not changed in size but where the company will be listed. “For me, it’s all or nothing. Every time we list it will be to raise Rs 3,000 crore,” he told BQ Prime.
Last year, Droom said it was considering listing on the US stock exchange, Nasdaq. But in November, the company filed its DRHP in India.
“Until August last year, we had no plans to register in India,” Aggarwal said. The reasons for changing his decision, however, were threefold.
Along with the Zomato, Paytm, and Nykaa listings, there were “comparable” new-age businesses for Droom. Furthermore, the idea that loss-making companies will not be accepted by the markets has also been largely abandoned. “An overseas listing is also more time-consuming, painful and costly,” he said.
But the doors to secondary listing in markets such as Singapore, Hong Kong, Europe or the United States remain open, as Droom operates in India through a subsidiary, Aggarwal said. The parent is registered in Singapore.
According to him, the recent fall in shares of new era companies was “largely due to market forces”.
Despite being a loss-making company, Aggarwal said no layoffs were expected, contrary to the industry trend.
“We are very inactive. Our employees are probably a tenth the size of the next player who is half our size,” he said. “We will be conservative where necessary, perhaps on discretionary spending, but we don’t anticipate any layoffs.”