Zomatos IPO has caused many to pause & reflect on the evolution of our startup ecosystem.
It also seems like a good a moment to pause & project on what impact such IPOs may have on our domestic investment universe. And on financial literacy.
Lets start with investments – since wealth creation is the most enticing consequence of financial literacy.
Peter Lynch, a modern day investment sage, is a ‘story’ investor- i.e an advocate for investing in ‘familiar’ companies. Companies where you are more likely to grasp its business and competitive environment, because you feel close to it -as a consumer, an employee or even as a competitor.
The average #Zerodha investor is 20-30 years old. This is, the same generation which has grown up alongside the ‘familiar’ companies like #Zomato, #PayTM, #nykaa , #Ola, #flipkartindia etc with IPOs on the horizon.
Investment penetration in India has been very low – 1% for equities, 2% for mutual funds. But Covid-19 seems to have accelerated people’s intrinsic drive for financial literacy (in order to get to the ultimate goal of financial independence). Between April 2020- Jan 2020, there we’re 10.7 million new demat accounts added (avg. for the previous two years ~4mn).
Opportunities often lie in the intersection of tailwinds and unique value proposition. Cultivating the curiosity of this new breed of investors, offers positive externalities for the entire country at large.
Can the proliferation of tech IPOs incentivize greater financial literacy and consequently higher investment penetration ? Is wealth/ investment tech poised for disruption ?
If you are a investment- tech #disruptor, we’d love to hear from you!