Lenskart, Paytm and Groww account for nearly 60% of the total activity as large shareholders sell stakes through block deaL
JAIPUR: India’s listed new-age companies witnessed significant secondary-market activity in August, with venture capital funds, early-stage investors, growth funds and other large shareholders selling shares worth nearly ₹27,000 crore through block deals across 13 listed startups.
A large portion of this activity was concentrated in a handful of companies. Lenskart, Paytm and Groww together accounted for around ₹16,400 crore of the total transactions, representing nearly three-fifths of the overall block-deal activity recorded in the listed startup segment during the month.
The transactions, however, should not necessarily be interpreted as complete exits by investors. Several venture capital and growth investors sold only a portion of their holdings, allowing them to realise returns while continuing to maintain exposure to the companies.
Lenskart Records the Largest Block Deal Activity
Lenskart witnessed the highest block-deal activity among listed new-age companies during August, with three major transactions involving shares worth around ₹7,445 crore.
On August 24, SoftBank Vision Fund II sold shares worth approximately ₹2,888 crore, reducing its stake from 9.86% to around 7.28%.
On August 28, entities linked to Alpha Wave sold shares worth nearly ₹1,857 crore. Another transaction worth around ₹2,700 crore took place on August 31 involving institutional investors linked to BNP Paribas Financial Markets, Societe Generale and Integrated Core Strategies.
The transactions made Lenskart the largest contributor to secondary-share activity among listed new-age companies during the month.
Paytm Sees Nearly ₹5,000 Crore in Block Deals
Paytm also witnessed two major block transactions in August, with their combined value estimated at around ₹4,987 crore.
On August 4, entities linked to Elevation Capital and SAIF sold shares worth approximately ₹2,038 crore.
Later, on August 18, Resilient Asset Management, an investment vehicle associated with founder Vijay Shekhar Sharma, sold shares worth around ₹2,949 crore.
The transactions once again highlighted the continuing monetisation opportunities available to early and existing investors in listed technology companies.
Groww Sees Around ₹4,000 Crore Worth of Transactions
Groww was another major contributor to the month’s block-deal activity, with transactions worth approximately ₹4,000 crore.
The company saw a transaction of around ₹1,500 crore on August 18, followed by another deal worth nearly ₹2,500 crore on August 26.
Ribbit Capital was reported as a potential seller in the August 26 transaction.
Taken together, Lenskart, Paytm and Groww accounted for approximately ₹16,400 crore of block-deal activity, making them the three biggest contributors to institutional secondary-market transactions among listed startups during August.
Eternal and Meesho Also Witness Large Stake Sales
Food-delivery and quick-commerce company Eternal witnessed a block transaction worth approximately ₹3,265 crore on August 31.
BNP Paribas Financial Markets sold shares worth around ₹1,671 crore, while Integrated Core Strategies, linked to Millennium Management, sold approximately ₹1,594 crore.
Meanwhile, Meesho recorded two major transactions during August, with a combined value of around ₹2,919 crore.
On August 4, Elevation Capital and Peak XV Partners sold shares worth approximately ₹975 crore each. The combined transaction was valued at around ₹1,949 crore.
On August 24, entities linked to Y Combinator sold shares worth nearly ₹970 crore.
Block Deals Spread Across the New-Age Startup Universe
The selling activity was not restricted to Lenskart, Paytm, Groww, Eternal and Meesho.
Large transactions were also reported in companies including Ather Energy, Amagi Media Labs, PhysicsWallah, Urban Company, Aye Finance, WeWork India Management, Shadowfax Technologies and Capillary Technologies.
Ather Energy witnessed a transaction worth around ₹1,758 crore, with Singapore’s government selling shares. Hero MotoCorp emerged as the buyer and increased its stake in the electric two-wheeler company.
Public Markets Offer VCs a New Liquidity Route
The August transactions highlight the growing role of India’s public markets as a liquidity platform for venture capital and growth investors.
Funds and entities linked to investors such as SoftBank, Alpha Wave, Elevation Capital, Peak XV Partners, Lightspeed, Accel and Y Combinator were among the notable sellers during the month.
However, a block deal does not automatically mean that an investor has completely exited a company.
VC and growth funds often sell part of their holdings after a company becomes publicly listed to return capital to their investors while retaining exposure to the business.
Lock-In Expiries Add to the Supply of Shares
The increase in secondary-market activity has also coincided with the expiry of lock-in periods for shares held by pre-IPO investors in several newly listed companies.
An earlier analysis had estimated that shares worth around ₹2.3 lakh crore across 11 newly listed new-age companies were scheduled to become eligible for trading between May and August following the expiry of applicable lock-in periods.
This has created a larger pool of potentially tradable shares and provided early investors with an opportunity to monetise their holdings.
At the same time, mutual funds, insurance companies, pension funds and global institutional investors have absorbed a portion of the supply, indicating that institutional demand for selected new-age stocks remains intact.
Aurelius Business View
The nearly ₹27,000 crore worth of block deals recorded across listed startups in August should not simply be viewed as a sign of heavy VC selling.
For early investors, selling shares after a successful listing is a normal part of the investment cycle. The transactions also demonstrate how India’s public markets are increasingly providing venture capital investors with a clear liquidity route that was previously available mainly through private-market transactions.
For public-market investors, however, the more important question is not simply who sold and how much, but also at what valuation the shares were sold, how much stake the investor continues to hold and who bought those shares.
If institutional investors continue absorbing the additional supply, the increase in secondary-market selling could remain manageable.
However, if further lock-in expiries lead to sustained selling pressure while institutional demand weakens, some listed new-age companies could face increased volatility and pressure on their valuations.
Investors should therefore closely monitor VC and promoter stake changes, block deals, institutional ownership trends and quarterly financial performance in companies such as Lenskart, Paytm, Groww, Eternal and Meesho in the coming months.
Disclaimer: This article is based on publicly available information and reported transactions. It is intended for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security.
