India’s startup ecosystem has witnessed landmark IPOs in recent years, with Zomato, Nykaa, and more recently Urban Company showcasing strong market debuts. However, business leaders caution against treating public listings as the sole benchmark of success.
While IPOs bring credibility and access to capital, the larger goal lies in profitability, compliance, and building sustainable institutions that endure beyond market cycles.
Business leaders emphasised that while IPOs remain a milestone for startups, they are not the ultimate goal. The focus, according to industry leaders, should be around around profitability, compliance, emotional maturity, and long-term sustainability, leaders stressed that strategic exits, innovation, and building institutions with purpose are equally valid outcomes.
The IPO Landscape
Abhinav Gupta, CEO, Cars24 Arabia, Cars24 reflected on how the startup mindset has evolved. He explained that in the past, growth was prioritised over profitability, but IPOs are now viewed as stepping stones rather than an end goal.
“I also feel now that founders have moved from this tunnel thought process of startup all the way to IPO, rather now founders are looking at IPOs as a stepping stone. It helps founders raise money, it helps them expand the whole idea,” Gupta said, while noting that only 30 per cent of startups trade above their listing prices, underscoring the risks.
Adding perspective, Gaurav Bagga, Senior Vice-President and Head of Engineering and Product, Pristyn Care, pointed out that investor expectations are driving this change.
He said that while a decade ago, startups had more freedom to grow before considering IPOs, today the push towards profitability is stronger. “It has definitely become a validation point where you get accessibility from the market as well, and with retail investments growing, it becomes another lever of investment,” Bagga explained.
Deepak Aggarwal, Co-founder and Co-CEO, Moneyboxx, agreed that IPOs signify credibility but cautioned against viewing them as the ultimate destination. He stressed the importance of due diligence, pointing out that institutional investors and compliance processes demand robust financial discipline. “Only 30 per cent of them are above their listing price. When you buy, you have to see what is on the table,” Aggarwal noted.
Building Institutions With Purpose
Mayank Gupta, Co-founder, Zopper, questioned the glorification of IPOs, urging founders to prioritise solving real problems over chasing public listings. He argued that sustainable businesses can thrive through strategic exits, mergers, acquisitions, or even by staying private.
“The fundamental philosophy should be to build a sustainable, meaningful, logical business, whether your company is listed today, tomorrow, or never,” he said, citing Zoho as an example of a successful private company.
Gupta further outlined a three-dimensional framework for IPO readiness, strategic, operational, and emotional. He stressed that founders must be prepared for the responsibility of answering to millions of retail investors and handling stock market volatility. “There has to be an emotional maturity in the mind of the founder that yes, I am now ready to withstand such turmoil in my day-to-day life,” he advised.
Aggarwal built on this, saying compliance and governance should be ingrained from day one, not only when preparing for an IPO. “Any business scaled today is scaled because they are following compliance. Otherwise, it’s just a matter of time before you face cash loss or opportunity loss,” he said.
Regulatory Compatibility
Abhinav Gupta highlighted the role of regulatory reforms in shaping India’s startup landscape. He cited examples like the abolition of angel tax, normalisation of ESOP norms, and the rise of retail investors post-COVID. “Multiple successful examples in India show how startups are choosing to list domestically, with reverse mergers happening from Singapore back to India,” he explained.
Bagga added that government support and consumer readiness to invest are also enabling factors. “There are enough consumers in the country, enough people ready to put money into startups. That is probably the reason,” he observed.
The panel also discussed how hypergrowth and innovation continue to fuel India’s startup ecosystem. Gupta pointed to artificial intelligence as the next wave of disruption, while Aggarwal stressed that sustainability, purpose, and long-term wealth creation for investors must remain the true badges of honour for businesses.
Mayank Gupta closed by calling for “intellectual rigour and ethical honesty,” while Aggarwal reminded that startups must aim to build legacies, not just businesses.
This panel discussion was taking place at BW Disrupt Founders’ Forum 2025 and was moderated by Ruhail Amin, Senior Editor, BW Businessworld. |
