But with the Zomato initial public offering (IPO) opening the doors for public market investors to invest in these firms, it’s now the turn of private market investors to watch in awe and disbelief. Clearly, public market investors, drunk with liquidity, are far more imaginative about the promise and potential of internet firms than their counterparts in the private markets. While private market investors have turned cautious, public market valuations have exploded. While public market valuations are being driven by high investor sentiment and momentum trades, private market investments tend to be relatively more considered and careful, or so it now seems. Of course, just like private market investors have made mouth-watering returns on their bold bets with Zomato, it’s entirely possible that the growth of the food delivery firm lives up to the far higher expectations of public market investors.

Source: Mint July 25, 2021 16:30 UTC