29 May 2026
This is a link-enhanced version of an article that first appeared in Forbes India
Article Overview:
The story highlights the cautious IPO environment for new-age tech companies with investors prioritising governance, profitability and valuation discipline, prompting startups to be more deliberate about IPO timing. It also explores how companies are increasingly focusing on strengthening business fundamentals and demonstrating a clear path to sustainable growth before accessing the public markets. As investor scrutiny intensifies, IPO readiness is becoming as much about governance and financial performance as market opportunity, with the ongoing market recalibration potentially leading to more sustainable value creation than the exuberant fundraising wave of previous years.
Our Partner, Vijay Parthasarathi, shared his perspective. Here’s what he had to say:
“Investors are scrutinising governance, cash burn and founder exits more closely than before, which in turn is raising the bar for newer startups.”
“While there is still good traction on deal activity, NATCs are waiting for better market sentiment, stronger profitability and improved valuation windows for a potential listing.”
Promoters and founders are being thoughtful about IPO timing and are aligning their listing plans with market readiness, investor expectations, and long-term value creation. “Valuations are also being viewed with greater discipline, with companies increasingly focussed on presenting a compelling and sustainable equity story for public market investors.”
“The appetite for NATC and startup IPOs continues to remain encouraging, particularly for companies that can demonstrate strong governance, efficient capital use, founder stability, clear unit economics and a credible path to profitability.”
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