Valuation of Fintech Unicorns

1. FINTECH UNICORNS VALUATION
DR RAJU INDUKOORI

2. FINTECH
• Portmanteau of Financial Technologies is Fintech.
• Fintech firms use innovative technology in financial instruments and
services.
• They have potential for exponential growth rate with disruptive
financial services.
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3. FINANCIAL TECHNOLOGY FIRMS CLASSIFICATION
NATURE
• Erosion
Banking Verticals
• Agglomeration
Financial Super Markets
• Convergence
Ecommerce and Fintech
PRODUCT
• Collaboration
Banking, Regulators,
NBFCs, SROs
• Disruptive
PayTM, Zeroda
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OWN/JOINT
Product Based
• Banking
• Bitcoin
• Broking
• Insurance
• Investments
• Lending
• Payment & Remittances
Non Product Based
• P2P
• SaaS
• Education
• FinTech
Policy Bazar, Zeroda
• TechFin
AliPay, Amazon Pay
• RegTech
RBI, SEBI, IRDA, SROs
INDUSTRY

4. VALUATION METHODS FOR LISTED COMPANIES
1. Discounting Cash Flows
2. Earning Multiples
3. Asset Value
A. Book Value
B. Liquidation Value
C. Market Value
D. Replacement Value
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5. VALUATION CHALLENGES
1. Private Limited Companies (PLCs)
2. Public Limited Unlisted
3. Startups : Pvt Ltd, Public Ltd
4. Fintech Firms
5. Unicorns
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6. FINTECH VALUATION METHODS
1. Recent Transactions
A. Venture Capital Firms (VCs)
B. Private Equity Firms (PEs)
2. Owners Funds
A. Own Funds at Book Value (OFBV)
B. OFBV / Capitalization Ratio
3. Asset Value
A. Net Asset Value (NAV) : Net of Non Equity Liabilities
B. NAV excluding Goodwill and Intangible assets
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7. UNICORN
• The startup which has a value of USD 1 Billion and Over
• USD 10 Billion is Deca Corn and USD 100 Billion is Hectocorn
• As on 10th Aug 2021
• 55 Unicorns in India
• 21 Unicorns in 2021 out of which 8 are Fintech Unicorns
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SOURCE : INC42.COM

8. TOP 10 INDIAN FINTECH UNICORNS VALUE
# Unicorn Sector
Value
in $ Billions Year Location
1 Digit Insurance General 3.5 2021 Bangalore
2 RazorPay Payment Gateway 3.0 2020 Mumbai
3 BharatPe Payments 2.8 2021 Mumbai
4 PolicyBazaar Insurance 2.4 2018 Gurgaon
5 BillDesk Payments B2B 1.6 2018 Bangalore
6 OfBusiness NBFC -SME Loans 1.5 2021 Bangalore
7 Zeta Neo Banking 1.4 2021 Chennai
8 Five Star Business Finance NBFC 1.4 2021 Gurgaon
9 CoinDCX Cryptocurrency Exchange 1.1 2021 Bangalore
10 Groww Investments 1.0 2021 Delhi
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SOURCE : VENTURE INTELLIGENCE

9. THANKS FOR YOUR PARTICIPATION
DR RAJU INDUKOORI