Zomato, Paytm, Nykaa, other new-age internet stocks see FPIs raise stake in past year
Zomato, Paytm, PB Fintech, Nykaa, Delhivery and others have seen rising interest from foreign investors over the past one year as these companies seem to have been improving their business models and reporting decent growth with operational efficiencies. The Foreign Portfolio Investors (FPI) have raised their shareholding in these new-age tech companies, as seen in the June quarter shareholding pattern.
The inflow of smart money comes as many of these loss-making, and often termed ‘overvalued’, companies are witnessing sharp revenue growth and narrowing of losses. FPIs have increased their stake in One97 Communications, the parent company of Paytm, to 16.86% at the end of June 2023 from 5.45% in June 2022.
FPI shareholding in food delivery aggregator Zomato rose to 33.33% in June 2023 from 9.85% in June 2022. Also Read: IPO update: 37 companies to see pre-IPO lock-in open up in four months Similarly, FPIs hiked their shareholding in PB Fintech to 29.67% as of June 2023 from 14.08% last year and in Delhivery, they raised stake to 22.7% from 8% during the said period.
FSN E-Commerce Ventures, the operator of online fashion and beauty products platform Nykaa, saw an increase in FPI shareholding to 10% at the end of June 2023 from 6.5% in June 2022, as per the latest shareholding data available on exchanges. Turn around in the business prospect of these new age tech companies has helped restore the confidence of Foreign investors.
These companies are likely to turn profitable amid improving operating efficiencies, cost cutting efforts and building new revenue streams. Also Read: Jio Financial Services share price locked at 5% lower circuit for third straight day In the Q1FY24 results, Zomato showed profitability for the
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