Copyright thehindubusinessline
What’s next? This existential question never leaves our side — whether in the realm of personal ambition or the boardrooms of high-growth enterprises. For India’s crop of ambitious founders, that “what next” is invariably linked to public listing, once heralded as the capstone of business achievement. Yet, the tide is turning. While going public still offers massive opportunities, remaining private is increasingly regarded as a strategic masterstroke in today’s dynamic global and Indian environment. The traditional narrative was straightforward: start, scale, list. However, according to KPMG, while 80 Indian companies debuted on the main boards in FY25 — raising a record ₹1,630 billion — the Indian startup ecosystem is witnessing growing hesitance among founders about the rush to go public. Globally, the story echoes this: the number of publicly listed companies in the US has dropped from over 8,000 in 1996 to around 4,500 today, and the median age to IPO in the US has nearly doubled since 1980. Why this reversal? Increased compliance, the regulatory burden, and relentless public scrutiny play a significant role. Public founders often feel paralysed — forced to prioritise quarterly results over radical innovation and long-term vision. This sentiment is echoed from Silicon Valley to Bengaluru. Richard Branson’s experience with Virgin exemplifies the tension. He described public company leadership as “immobilised by deliberation,” prompting him to return to private ownership, where entrepreneurial risk-taking could thrive. Michael Dell’s narrative is equally illuminating. In 2013, facing market headwinds, Dell took the company private to orchestrate a complex transformation— something he asserts was only possible away from shareholders’ quarterly demands. After repositioning as an enterprise IT powerhouse, Dell returned to public markets on its own terms. Back home, Zoho Corp’s Sridhar Vembu champions privacy as an innovation imperative. He credits Zoho’s private status for nurturing products like Arattai, which, he asserts, would have never survived the withering gaze of quarterly results or public scepticism. The company is now India’s third-largest unlisted tech entity, having prioritised long-term R&D over fleeting market hyping. Similarly, Nithin Kamath of Zerodha warns about the risks of bringing an army of retail investors onto one’s cap table, saying public status often diverts focus from customers to quarterly profit growth. Notably, this preference is not limited to new-age innovators. Century-old Indian stalwarts like Parle and Cargill have deliberately stayed private, underscoring that the premium on privacy is rooted in operational freedom and generational stewardship. Contemporary trends Despite the allure of privacy, public markets continue to power India’s growth narrative. The first half of 2025 saw 108 IPO deals in India, raising $4.6 billion, according to EY — placing India among the world’s top IPO destinations. In fact, while the number of deals decreased, the average offering size and investor enthusiasm remained robust, especially in high-growth sectors such as tech, fintech, and healthcare. Successes abound: companies such as Urban Company and Smartworks saw standout public debuts, serving as inspiring examples of what can be achieved. Others like DevX and BlueStone experienced subdued responses — reminding us that not all public listings are equal. Participation of retail investors and oversubscription rates remained high, indicating trust in India’s capital markets. At the same time, over 40 Indian startups — including Groww, Lenskart, Oyo, Razorpay, and Meesho — are expected to test the public waters in 2025 and beyond, with DRHPs filed for record-sized IPOs. The fine print Yet, as Buffett famously said, in the short term, markets are “voting machines” shaped by hype, while long-term success hinges on fundamentals. The IPO euphoria can stoke unrealistic expectations among retail investors, many of whom are drawn by success stories of “100X” early returns and spectacular one-off events — a phenomenon that is especially pronounced during blockbuster listings. The choice for founders is thus rarely a binary one. IPOs, while invaluable for scale, credibility, and liquidity, come at the cost of day-to-day operating freedom. Private companies, conversely, retain agility — critical in a rapidly evolving innovation economy. Ultimately, the decision to go public or stay private is about alignment: with one’s growth trajectory, culture, and investor philosophy. Both routes offer unique marginal utilities — but both require discipline, vision, and an unwavering focus on business fundamentals. This is not a decision to be taken lightly, but one that underscores the importance of your role in shaping the future of your company. In a year that has already rewritten records for capital raised and participation, India’s founders have the opportunity — but not the obligation — to choose their path to creating enduring value. The best founders, such as Branson, Dell, and Vembu, have demonstrated that the real utility lies in knowing not just how to answer “what’s next?” — but when to ask it. Chandra Shekar is Associate Professor, Program Head – PGDM BFS, Institute of Public Enterprise, Hyderabad, and Kumaran is Area Credit Manager, SMFG India Credit Ltd, Chennai Published on October 29, 2025
