Experts Weigh in on Investing in New-Age Companies

Global Wealth Summit 2026: Experts Weigh In on New-Age Companies

At the recent Moneycontrol's Global Wealth Summit 2026, industry experts shared their insights on the growth opportunities and challenges presented by new-age companies.

Motilal Oswal Financial Services chairman and co-founder Raamdeo Agrawal expressed optimism about the potential of new-age companies, citing their ability to revolutionize consumer behavior and create a permanent shift in the way households purchase goods and services. Agrawal compared this shift to the way consumers now book movie tickets online, highlighting the convenience and flexibility offered by these new-age companies.

Agrawal acknowledged that profits are not yet visible in these companies, making valuations difficult. However, he believes that investing in them is a way to participate in the opportunity and potentially reap significant returns. He noted that only a few companies will eventually dominate the sector and become worth Rs 25-40 lakh crore.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Agrawal cautioned investors to understand the underlying value or potential value of new-age companies before investing. He emphasized that these companies are often expensive, with many trading at 80-150 PE multiples. He advised investors to stay away from new-age companies if they do not understand the underlying value or potential value.

In contrast, Fortuna Capital partner Sanjoy Bhattacharya took a sharply different view, criticizing the new-age narrative and questioning the arguments made by founders and management teams. Bhattacharya argued that unit economics alone are not enough and that companies need to demonstrate profitability and reasonable valuations to be viable investments.

Bhattacharya emphasized the importance of honesty and transparency in management teams, highlighting the need for companies to deliver profits and operate sustainably. He argued that the lack of profitability and reasonable valuations in many new-age companies makes them a "gigantic joke" being played on investors.