Suresh's quote on uncertain market conditions - The Economic Times
SaaS company Netcore puts off IPO on 'uncertain market conditions'
Bootstrapped firm to review IPO prospects after examining FY23 numbers as softness in customer decision-making and macroeconomic uncertainty dictate caution.
Mumbai-based bootstrapped SaaS company Netcore Cloud has put off its initial public offering on Indian stock exchanges on uncertain macroeconomic factors and a perceived 'softness' in customer decision-making in the SaaS market, founder and group MD Rajesh Jain told ET.
Netcore had originally started the IPO process in August this year, with the listing slated for February-March next year. After conversation with bankers, the company decided that it would review IPO prospects again by February next year, and focus on building new products and bolstering presence in the US market, where it had made a $100-million acquisition in March this year.
Netcore sells marketing automation software to e-commerce firms and D2C companies.
Factors like rising lending rates in the US and the war in Ukraine have weighed on market sentiments, Jain said. "Secondly, I want to go into my IPO with a high degree of confidence about my future numbers," Jain said, referring to the phenomenon of software buyers showing signs of delayed decision-making on purchases.
In March, Jain had said Netcore had reached an annual recurring revenue of $85 million, with targets to raise that number to $150 million by end-September next year. The company had made a targeted acquisition of Unbxd Inc—a rare instance of a bootstrapped unicorn by a venture capital-backed company—to bolster search offerings to Netcore's US-based e-commerce customers, among others.