Business News: PE-VC Funds Realize 5x Gains from Fintech IPOs Over 5-6 Years

Wednesday, 2 October 2024, 16:39

Business news highlights that PE-VC funds have achieved median returns of 5x from fintech IPOs after a holding period of 5-6 years, according to JM Financial. This remarkable performance includes companies like Paytm and PolicyBazaar, showing consistent growth across the fintech sector. Investors note a notable 30% internal rate of return (IRR) for venture capital firms, reflecting industry benchmarks.
Indiatimes
Business News: PE-VC Funds Realize 5x Gains from Fintech IPOs Over 5-6 Years

Business News: Significant Gains from Fintech IPOs

BENGALURU: Private equity and venture capital firms have reaped significant benefits, achieving median returns of about 5x from fintech public listings over an average holding period of 5-6 years. This insightful study conducted by JM Financial and Beams Fintech Fund analyzed several companies, including Paytm, PolicyBazaar, Tracxn, Angel One, KFintech, CMS Info Systems, and Newgen.

Consistency Across Fintech Sector

The returns align closely with industry expectations and demonstrate consistent growth across various sub-sectors within fintech. Investors consulted by Times of India emphasized that these lucrative returns correlate with an impressive 30% internal-rate-of-return for venture capital firms, with a 30% IRR serving as a benchmark for technology investments.

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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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