IPO-bound startups may opt for confidential filings

Market swings push startups to keep financials private and adapt to changing conditions

- Ranjani Raghavan & Sneha Shah

Companies, especially startups, may increasingly be pursuing the path of confidential IPO filings to keep their listing timelines flexible and manage market volatility, people familiar with the public markets said. Edtech company PhysicsWallah, which raised additional capital from existing investor Westbridge, is likely to make a confidential filing for an initial public offering within three weeks, a person familiar with its plans said.

Physics Wallah did not immediately respond to a request for comment.

Confidential filings allow companies to keep sensitive information private for a longer time and submit updated documents closer to the share sale. It also allows them to approach investors with a uniform set of numbers after a regulatory nod and is especially useful for high-growth firms with financials that can change each month or quarter.