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“Startup India” is a scheme of the Government of India, first announced
by Hon’ble Prime Minister, Narendra Modi in the year 2015. The action plan of
this proposal was focussed mainly on four areas - Simplification, Handholding,
Funding Support and Incentives. Further, Industry-Academia Partnership,
Incubation and discarding restrictive States Government policies were also
considered.
A start-up is a company or project undertaken by an entrepreneur to
authenticate a scalable business model. Modi Government’s “Pradhan Mantri
Mudra Yojana” scheme, to provide low cost loans to entrepreneurs from low
socio-economic backgrounds is a good beginning. An initial capital of Rs.
20,000 crore (approximately) has been been infuse. Further, our Hon’ble Prime
Minister has declared 16 th January as “National Start-up Day". The government
of a rising country like India should regulate private enterprise and support
commercialization of brilliant business plans. To expand the
administration have agreed to partner in a proposal to set up over 75 such
support centres in various autonomous technical and research institutes of
India. As per the States’ start-up ranking in the year 2020, best performer
is Gujarat, Andaman & Nicobar Island. The Indian start-up
ecosystem presently is at a juncture on how to grow from here on. The
prediction is that there will be a lot of IPOs in the coming years which will
help founders with cash liquidity and fund availability. Further, the Modi
government recently gave its nod to allow start-ups to directly list on bourses
overseas. As per the earlier law, only listed Indian companies were allowed to
list on exchanges abroad.

A current buzzword making rounds in the start-up world is "Unicorn". This
mythical term, is used to describe a privately held start-up company with a
valuation of over $1 billion. Some start-ups entering the club are Meesho,
PharmEasy, Grow, Urban Company, Upgrad, Grofers and many more.

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ENTERPRISE TECH
HEALTH TECH
EDUCATION TECH
FINANCIAL TECH
RETAIL TECH
CONSUMER TECH
HR TECH
MEDIA TECH
ADVERTISING
LOGISTICS
INDUSTRY WISE START-UP PRESENCE- 2020

However, most of the start-ups have not yet been listed in the stock-exchanges
and in fact, do not have published financials. Among those who have a
financial History, many of them are operating at financial losses. Two of the
start-ups operating in the public financial space are FSN E-Commerce Ventures
Limited operating the “Nykaa” brand and Happiest Mind Technologies Limited.

FSN E-Commerce Ventures Limited provides beauty and fashion solutions
mostly through the e-retailing mode. It was incorporated on 24.4.2012 and has
headquarters in Mumbai with more than 2000 employees. Helmed by the
founder and chairperson Ms. Falguni Sanjay Nayar, it recently issued an IPO in
Oct 2021 worth $ 711 Million which was fully subscribed on the first day of the
sale.

Founded in the year 2011 with headquarters in Bengaluru, Happiest Minds
Technologies Limited , is an Information Technology services Management
Company has tripled in value since the launch of its IPO in September 2020.

CURRENT VALUATIONS SNAPSHOTS

PARTICULARS
/ COMPANY
NAME ( AS
ON 25 TH
MARCH 2022
)

FSN E-
COMMERCE
VENTURES
NYKAA LTD

HAPPIEST
MINDS
TECHNOLOGIES
LTD

CMP 1598 1116
52 W H / L 2573 / 1125 1580 / 513
FV 1 2
BV 12 37
MKT CAP 75,745 16,400
P/BV 128 30
DIVIDEND
YIELD (%) NA 0.27

SHAREHOLDING PATTERN IN (%)

PARTICULARS /
COMPANY NAME ( AS
ON DEC 2021)

FSN E-
COMMERCE
VENTURES
NYKAA LTD

HAPPIEST
MIND
TECHNOLOGIES
LTD
PROMOTERS 52 53
FII/FPI 6 7

Total DII 3 2
PUBLIC 38 35
OTHERS NA 3

INCOME STATEMENTS

PARTICULARS /
COMPANY NAME ( IN
RS.CR) FY 2020-21

FSN E-
COMMERCE
VENTURES
NYKAA LTD

HAPPIEST
MIND
TECHNOLOGIES
LTD

EQUITY SHARE CAPITAL 15 28
TOTAL RESERVE AND
SURPLUS

546 514

TOTAL CURRENT
LIABILITIES

68 270

TOTAL ASSETS 646 907
TOTAL INCOME FROM
OPERATIONS (DEC 21)

138 747

BASIC EPS (DEC 21) 1.18 9

NET PROFIT ( DEC 21 ) 55 124
HISTORIAL PRICES HIGH
/ LOW ( 2 YEARS )

2574 / 1219 1580 / 333

OTHER VARIABLES

PARTICULARS FSN E-
COMMERCE
VENTURES
NYKAA LTD

HAPPIEST
MIND
TECHNOLOGIES
LTD

BUSINESS SEGMENT ONLINE BEAUTY
STORE

COMPUTER
SOFTWARE
SERVICES
BROKERS OPINION BUY BUY

OVERVIEW

It is true that this the era of start ups .The pandemic has trained all and sundry
that technology is here to stay and can be handled most efficiently by venture
capitalists. In the period of January-March 2021, investors have infused
around $4.4 billion (approximately) into Indian start-ups and the top gainers
are the Fintech and Financial Services start-ups. The future predictions,
confirm further usage of gadgets generating the need for technology based
services assuming high rate of new enterprise survival assured by profits.
Though the analysts are quite bullish about the start ups post pandemic, the
sector will have to navigate while raising funds and entering public market
including slow economic recovery in India, inflationary pressures and policy
normalization by global central banks. We all hope that start ups eventually
serve the Indian economy well.