PE ancl VC companies adjust to longer holds after public listing

Startup IPO boom reshapes their investment strategies

- KHUSH BOO TIWARI

A mid a successful year A for listings of new-age companies in India, private equity (PE) players and Venture capital (VC) firms are now ready to hold their investments for a longer term, said industry players. while secondary deals have also remained buoyant, the willingness to hold for a longer term, aiming for better performance in such startups, has increased. "Initial public offering (IPO) markets in India offer a very viable path to exit. Both PEs and VCs are now seeing it as a great opportunity to exit, including in the pre-IPO rounds. The unlisted market has also been very busy. Of the $55 billion in equity activity this year, $14.5 billion is through IPOs, while $23 billion is secondary," said Anuj Bhargava, managing director (MD) and head of corporate and strategic development for India and Southeast Asia at Lightspeed Venture Partners.

However, many believe the exit road map is now being rewritten to gauge post-listing gains.