Kochi

Start-ups urged to take IPO route

Infosys co-founder Kris Gopalakrishnan on Friday made a strong case for start-ups to think of Initial Public Offering (IPO) in order to tackle the fund crunch situation and provide longevity to their fledgling enterprises.

“Start-ups are hesitant to do IPO, which is not difficult. My biggest issue with the start-up ecosystem today is that they are not doing an IPO. Let the Indian public own these companies. They get the wealth being created,” he said. Mr. Gopalakrishnan was inaugurating the fifth edition of the two-day ‘Seeding Kerala’ organised by the Kerala Startup Mission.

“India has USD two trillion of wealth in private hands. Less than one per cent is invested in start-up ecosystem. We need High Networth Individuals’ [HNIs] money going into start-ups,” he said.

Mr. Gopalakrishnan advised start-ups to take minimum funds from angel, friends, and families. They have to create minimum viable product, and establish unit economics and profitable model, he underlined.

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Printable version | Apr 8, 2020 5:52:49 AM | https://www.thehindu.com/news/cities/Kochi/start-ups-urged-to-take-ipo-route/article30766853.ece

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