Technology has been the key driver of a tectonic shift in critical sectors such as healthcare, education, agriculture, manufacturing and retail, with an explosion of smart and connected devices, robust applications and use cases.

Almost all businesses are moving towards digitisation now. One thing to note is that this digital mandate isn’t new; it’s simply been brought into sharp focus now. When the pandemic struck, India was already on a digital-first path, with one of the largest volumes of digital transactions globally, which accelerated the adoption of contactless digital technologies. Now, digital adoption has taken a quantum leap at both the organizational and industry levels. Actually, Covid-19 turned out to be a reality check for businesses that had been reluctant to embrace digital transformation.

Now old barriers are being brushed aside under the pressure of unrelenting disruption, rapidly evolving customer expectations and an unprecedented pace of change. The essential pillars of the economy, banking and payments, have experienced a significant increase in digital offerings and uptakes. Technology has been the key driver of a tectonic shift in critical sectors such as healthcare, education, agriculture, manufacturing and retail, with an explosion of smart and connected devices, robust applications and use cases.

These sectors have shifted focus to the existing digital channels of their businesses or are increasingly making a bigger pivot to a digital business model. Such adoption has benefitted many companies with improved product quality and customer satisfaction, and this has contributed to better financial performance.

Thus, with the right approach, businesses can come out of this phase stronger, more agile and more customer-centric than before.

This has also put the Indian IT services sector in a sweet spot, owing to the acceleration in spending on digital transformation by global clients, increased offshoring and other such trends.

In recent times, Indian market participants have been showing great interest in stocks of tech companies. New offerings like Zomato, Nazara drew huge interest among the market participants and the stocks are doing extremely well on the bourses post listing. It is expected that over the next few years, more and more companies from fintech, foodtech, edtech, e-commerce, mobility, gaming and media segments would take the primary market route to list on the bourses.

There is huge investor appetite for such new-age businesses, which are using technology to grow rapidly in India and across global markets. Companies such as beauty e-tailer Nykaa, online insurance aggregator PolicyBazaar, fintech firm Paytm, e-commerce logistics firm Delhivery, eyewear retailer Lenskart and digital payments startup Mobikwik — among others — are at various stages of their IPO plans. There is an assumption that a successful modern tech company will transform whole industries quickly, achieve scale at breakneck speeds, and make large profits with limited capital investments. Which is why these companies are being seen as attractive investment opportunities to play on the multi-year growth story of the Indian digital economy.

https://cio.economictimes.indiatimes.com/news/corporate-news/what-explains-the-endless-investor-appetite-for-new-age-biz-tech-firms/85552466