New-Age Tech IPOs: Winners Fly High, Others Lag Behind

The public market journey for new-age technology companies has been a story of extreme highs and lows. Since 2021, over 20 such firms have gone public, but their performance has varied dramatically, creating a clear split between soaring successes and struggling underperformers.

Some new-age firms are hitting home runs like Zomato's parent Eternal Ltd. which has posted a 322% gain. Others, like PB Fintech Ltd. the parent of Policybazaar and CE Info Systems Ltd. or MapmyIndia, deliver solid returns, while a few, including One97 Communications Ltd., face choppy waters.

A select group of new-age companies have delivered impressive returns, with five generating over 100% gains for investors. Eternal leads this group with a monumental 322% return, proving that a strong business model can deliver an exceptional value.

Among other companies that have offered over 100% returns are Le Travenues Technology Ltd. (Ixigo), Zaggle Prepaid Ocean Services Ltd., Zinka Logistics Ltd. and Nazara Technologies Ltd.

While not reaching the triple-digit gains of the market leaders, several other new-age stocks have still posted positive and steady returns since their listing. Led by companies like Policybazaar and MapmyIndia, these group of companies show that a broader range of tech firms have been able to create value for shareholders.

Their steady performance provides a more balanced perspective on the sector's health. Among other such examples are Nykaa's parent Fsn E-Commerce Ventures Ltd., TBO Tek Ltd. and Easemytrip Ltd.

In stark contrast, six new-age companies are currently trading below their IPO issue price. This group highlights the significant risks involved in the sector. Paytm is the most prominent of these, with its stock down 42%.

Among other important names in this group are FirstCry's parent Brainbees Solutions Ltd., Mamearth's parent Honasa Consumer Ltd. and Ola Electric Ltd.

The management teams of the underperforming companies are painting an optimistic picture, focusing on key business metrics to drive growth and profitability.

Honasa management is positive on growth and anticipates a 100-150 basis points annual margin improvement over the next 4-5 years.

While, Ola Electric expects its fiscal 2026 volumes to be between 3.25 lakh to 3.75 lakh vehicles and revenue to be around Rs 4,200-Rs 4,700 crore.

FirstCry’s primary focus is on improving unit economics, and expects early-teens revenue growth in its India business for this financial year.

Mobikwik aims to add five million users and onboard 1 lakh to 1.50 lakh merchants each quarter. The company has also remained optimistic about the payments sector's growth.

Tracxn aims to sustain 100-200 net new accounts quarterly, with over 50% of revenue potentially flowing to the bottom line.

Lastly, Paytm is striving towards a 15-20% Ebitda margin and has maintained an improved margin outlook for the end of fiscal 2026.

While their returns have not been great analysts are still bullish on some of these new-age companies.

MapmyIndia has the highest return potential at 27.50%, and even FirstCry, despite its current struggles, is seen as a promising bet with a projected 18.30% return potential.