According to Business Insider, Prime Minister Narendra Modi is said to have gotten a letter from founders of 22 startups and renowned venture capitalists. In the letter, the owners requested the PMO to have them permits the overseas listing of their companies based in India. Companies like Swiggy, Urban Company, Cred, Infra, Market, Byju’s and Unacademy along with partners from Sequoia Capital, Accel, Lightspeed and Tiger Global are said to have written the letter. Further mentioning that the enlisting will add to a boost of the startup ecosystem and which condition a big impact in the market. Will elevate the status of Indian companies globally. They further emphasised the national outreach of these startups which can initialise India to make globally equipped products.
“Given this trend of fast-paced growth, many such mature companies are now keen to tap stock markets to raise further capital as it will allow them to fuel their domestic and international expansion, generate employment and make India more efficient and competitive.” the letter read.
This listing will pave a path for the Indian startups to reach a wider and more globally equipped market. Furthermore, elevate India’s reach in the global market. This matter of listing has been up for discussion now many times. Various companies have encroached on the policymakers time and again to fulfil their request. According to sources, the government is thinking of introducing enlisting in the next budget 2022.
Revenue Secretary Tarun Bajaj on August 25 said that direct overseas listing is under consideration by the government. “Direct listing for companies will need some issues to be sorted out for it to be a success,” Bajaj added.
The writers of the letter further explained why they are pitching this concept, they even collaborated to list a big deal of capital that can be raised which lead to an increment of the companies. They even stated that investors are more equipped with the US and Singapore market-creating high-value stakes for the tech companies.
“The current inability of unlisted companies to tap international markets for raising capital is hence an impediment to the growth ambitions of Indian startups, as their access to wider global pools of capital is blocked and serves up other disadvantages as outlined above,” the letter read.