Indian Startup Founders Actively Raise Personal Stakes Before Public Offerings

Indian startup founders are demonstrating confidence in their companies by actively increasing ownership stakes ahead of planned public offerings, as per news reports. This strategic move signals market confidence whilst securing greater control before entering public markets.

Lenskart's Peyush Bansal Makes Largest Stake Purchase

Lenskart cofounder Peyush Bansal executed the most significant move, purchasing a 2.5% stake for ₹222 crore from existing investors, including SoftBank and Chiratae. Notably, Bansal acquired shares at a $1 billion valuation, which is one-tenth of the company's latest $10 billion private market valuation.

Zetwerk Founders Invest ₹600 Crore Through Personal Debt

Zetwerk founders Amrit Acharya and Srinath Ramakkrushnan invested ₹600 crore into their company by raising personal debt, increasing their combined stake by approximately 2%. This substantial investment demonstrates strong conviction in the company's prospects.

Read More: Mukesh Ambani’s Space Bet: Reliance in Talks to Invest $50 Million in Spacetech Start-up Digantara!

Additional Companies Following the Stake Increase Trend

Amagi's founding team acquired shares worth ₹9 crore, whilst InMobi raised ₹32 crore from cofounders Naveen Tewari, Abhay Singhal, Piyush Shah, and Mohit Saxena. Meesho founders Vidit Aatrey and Sanjeev Barnwal increased holdings through ESOP allotments, with Aatrey receiving 20.65 lakh shares.

Historical Precedent from Previous IPO Cycles

This trend has precedent from earlier IPO cycles. In 2021, Zomato granted 368 million stock options to founder Deepinder Goyal, whilst Delhivery allotted ₹25 crore worth of shares each to cofounders. Swiggy implemented a $271 million ESOP plan with $200 million granted to founder Sriharsha Majety before the November 2024 listing.

Conclusion

Indian startup founders' strategic stake increases before IPOs, led by Lenskart's ₹222 crore buyback and Zetwerk's ₹600 crore investment, demonstrate market confidence during the crucial transition to public markets. SEBI's June regulatory changes have facilitated these moves, enabling founders to signal commitment whilst maintaining greater control ahead of public offerings.

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