Traffic on IPO exit route; Founders dig in pre-listing

Time of India

3 days ago

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Traffic on IPO exit route; Founders dig in pre-listing
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IPOs lead India's startup exit wave, but M&As may catch up: report
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Founders double down with pre-IPO stake boosts
Driving the news:
Why it matters:
In venture-backed companies, repeated funding rounds often leave founders heavily diluted.
To keep them aligned with public shareholders and motivated for the long haul, boards have started handing out pre-IPO top-ups.
It's now effectively a playbook move.
Zomato (now Eternal), Swiggy, Delhivery, PB Fintech, and Freshworks have all done it.
Lenskart's numbers:
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Tariff test for Apple's new 'strategist' COO, Sabih Khan
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Global Picks We Are Reading
Happy Thursday! Public debuts were the popular exits for private equity and venture capital last year. This and more in today's ETtech Morning Dispatch.■ New Apple COO's challenges■ $10,000-a-day fine for Byju■ New actor on microdrama stageIndia's startup exits had a blockbuster 2024, with initial public offerings (IPOs) taking centre stage . Public listings accounted for 68% of all private equity and venture capital exits, according to a DC advisory report, shared exclusively with ET.Public market exits hit $15.5 billion last year, driven by high-profile IPOs from Swiggy Ola Electric , and FirstCry . That's up from $13.3 billion in 2023, beating the $12.4 billion frenzy of 2021.Strong corporate earnings, eager domestic investors, and a crop of VC-backed firms finally ready to list. But the game is already changing.In just the first five months of 2025, strategic M&A exits hit $2.5 billion, already ahead of last year's full tally. Deals like Hindustan Unilever buying Minimalist , InsuranceDekho's merger with Renewbuy, and Delhivery acquiring Ecom Express (after shelving its IPO) point to a growing momentum on the private side.IPO valuations have come off the boil. Public investors are getting increasingly choosier, and fundamentals matter more than ever. That's opening space for a more balanced mix of exits through M&As and secondaries over the next 6-12 months.After a record IPO run, India's exit story is entering a new chapter. Bankers say the split between public and private routes will likely even out as startups and their backers look for smarter, faster ways to cash out.Peyush Bansal, CEO, LenskartLenskart is the latest to clear the runway for its founder ahead of a blockbuster listing. CEO Peyush Bansal will likely receive additional shares through a structured payout, boosting his stake by 1.5–2%, people in the know told us.Bansal and cofounder-wife Neha currently hold around 12–13% between them. ET reported that the fresh allotment will give them a stronger foothold as Lenskart prepares for a $1 billion IPO , aiming for a $10 billion valuation.Swiggy's founder received options worth $200 million ahead of its 2024 IPO. Zomato's Deepinder Goyal landed fresh stock that could double his stake.The eyewear giant narrowed its FY24 loss to Rs 10 crore. Revenue jumped 43% to Rs 5,248 crore, while Ebitda more than doubled to Rs 856 crore.Founder stake boosts are no longer a nice-to-have; they're fast becoming standard practice. With the IPO queue growing, they give entrepreneurs more skin in the game and a stronger incentive to deliver once public.ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.Interested? Reach out to us at [e-mail] to explore sponsorship opportunities.Sabih Khan, COO, AppleSabih Khan, Apple's new chief operating officer and the latest Indian-origin executive to join Silicon Valley's top tier, steps into the hot seat at a tricky time . The Moradabad-born Apple veteran inherits a high-stakes brief — and a looming Trump-shaped headache.Donald Trump has threatened a 25% tariff on US-bound devices made overseas. That's bad news for Apple, which is expanding manufacturing in India while heavily relying on China.Anurag Agarwal of TechAisle tries to put things in perspective. 'Taking the operational reins of Apple right now is akin to being asked to redesign a spaceship's engine while it navigates an asteroid field." For Khan, the job is to keep Apple's supply chain smooth, its products flowing, and its prices stable.As a priority item, navigating the US-China tightrope and protecting Apple's global manufacturing playbook. That balancing act could define his legacy.Khan, 58, has already earned plaudits from CEO Tim Cook for driving advanced manufacturing and boosting Apple's US production. It's a return to familiar ground: Cook himself rose through the COO's role before taking over from Steve Jobs in 2011. Now, it's Khan's turn to steady the ship.The leading GPU maker outdid its Big Tech peers to reach the $4-trillion milestone first, exceeding the GDPs of France, Britain or India, buoyed by rising AI demand. Microsoft ranks second with $3.7 trillion market value, followed by Apple at $3.12 trillion.A Delaware judge has held Byju Raveendran in civil contempt for repeatedly ignoring orders in the bankruptcy case of Byju's US arm, slapping a daily fine of $10,000 until he complies.Digital content company Chai Bisket has raised $5 million in seed funding from Info Edge Ventures and General Catalyst to launch its microdrama app Chai Shots.A falling dollar, which gives the rupee a tailwind, should boost revenues for Indian tech companies by 0.7–3 percentage points in the June quarter, according to analysts.■ Why Big Tech is threatened by a global push for data sovereignty ( Rest of World ■ Andreessen Horowitz leaves Delaware for Nevada, tells startups to follow ( Bloomberg ■ The Bezos-funded climate satellite is lost in space ( The Verge