Young, loss-making startups keep OFS portion lean as investor scrutiny grows (opens original article in a new tab)

Young, loss-making startups are focusing on fresh issue components in IPOs to fund growth as investor scrutiny increases, with examples like Zepto's Rs 8,010-crore offering, while preferring to allocate proceeds to growth rather than shareholder exits.

• Young, loss-making startups are keeping fresh issue components large in IPOs to fund growth as investor scrutiny increases
• Zepto's Rs 8,010-crore fresh issue is an example of this trend
• Investors prefer IPO proceeds to go into growth and balance-sheet strength rather than shareholder exits
• The shift reflects increased caution about how IPO proceeds are used post-listing