Local MFs hold stocks worth over $8 billion in new-age companies
mutual funds now hold stocks worth more than $8 billion, or almost Rs 69,000 crore, in a dozen new-age companies including Zomato, Paytm, PB Fintech, Nykaa, Delhivery and Mamaearth on account of the rising valuations of some of these companies and many of them having gone public in recent years.
The value of startup holdings by mutual fund companies such as ICICI Prudential, Axis Mutual Fund, Kotak Mutual Fund, HDFC Mutual Fund, Nippon Mutual Fund, Invesco India and Mirae Asset Mutual Fund was $2.7 billion a year ago, but only with six companies versus 12 now, calculations made by ET show.
Besides the steady climb in stock prices that companies such as Gurgaon-based Zomato and Policybazaar-parent PB Fintech have witnessed in the last year, a clutch of new-age companies doing their initial public offerings (IPO) has led to the increased exposure by domestic mutual funds to this asset class.
In 2024, six startups – Go Digit General Insurance, Ixigo, Awfis, Unicommerce, Ola Electric and FirstCry – have gone public so far.
IPOs in the pipeline include Bengaluru-based food and grocery delivery firm Swiggy, digital payments platform Mobikwik, electric two-wheeler maker Ather Energy, truck aggregator platform Blackbuck and third-party ecommerce logistics firm Ecom Express.
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