April 15, 2025 – Mumbai: Indian startups are facing delays in their initial public offering (IPO) plans due to market volatility triggered by U.S. President Donald Trump’s tariff policies. The uncertainty has extended to private markets, where valuation concerns are causing deal closures to stall.Politico+2The Times of India+2The Times of India+2
Despite ample capital reserves, investors are renegotiating valuations in response to public market corrections, leading to delays in significant deals. Startups seeking funding may have to accept lower or flat valuations. Even with a 90-day pause on reciprocal tariffs for countries excluding China, global macroeconomic uncertainty continues to affect investor sentiment.The Times of India
Mehekka Oberoi, Fund Manager at IIFL Fintech Fund, noted that funds have yet to deploy 25%-30% of their raised capital, and new funds are being raised. However, ongoing deals are being renegotiated, and if public markets remain subdued, initial discussions will continue to be delayed. Companies urgently needing capital may have to compromise on valuation multiples.The Times of India+1Axios+1
Amit Ramchandani, CEO and Head of Investment Banking at Motilal Oswal Financial, added that while investors are returning to the table, pricing remains a concern.The Times of India
Amit Nawka, Partner at PwC, mentioned that had valuations not been an issue, the flow of large funding deals ($100 million and beyond) would have been higher, given the current attractiveness of private markets. However, the downturn in public markets has led to scrutiny of valuations in large private deals.businessinsider.com+2The Times of India+2businessinsider.com+2
Private equity firms like KKR and Kedaara Capital have been active in the startup space, with Kedaara Capital leading a $60 million funding round for fintech Juspay and KKR acquiring a stake in Rebel Foods through a secondary transaction. Aditya Shukla, Partner at Bain & Company, observed that while India remains attractive for investors and startups, some tempering of valuations is expected in select mid to growth-stage deals, with stringent evaluations by investors continuing.
From a broader perspective, private markets currently appear more favorable, and overall funding, including large deals, is expected to gain momentum in the coming months. Shapath Parikh, Executive Director at DSP Investment Managers, stated that the IPO window is currently closed, and listing activity is anticipated to be significantly lower this year. Rational valuations in private markets should drive funding in the unlisted space.
Source: “Trump tariffs put pause on startups’ IPO plans”, The Times of India, April 15, 2025. Read the original article
Disclaimer: This article is not authored or drafted by any employee of FinMen Advisors. The information presented is entirely sourced from the above news link. FinMen Advisors is not responsible for the accuracy, completeness, or reliability of the information.
