GANDHINAGAR: In a recent episode of his podcast, 🤔WTF, Zerodha founder Nikhil Kamath sparked a debate on the merits of Initial Public Offerings (IPOs). Kamath, a major investor in gaming platform Nazara Technologies, revealed that “nine out of ten” founders he has spoken to privately express regret after taking their companies public.
👉Concerns About Short-Term Pressures and Transparency:
Kamath’s reservations center around the pressures associated with publicly traded companies. He highlighted the burden of delivering short-term results to appease investors and the increased scrutiny that comes with public listings.
👉Nazara Tech Counters with Benefits of Going Public:
However, Nitish Mittersain, founder of Nazara Technologies, presented a contrasting perspective. He emphasized the advantages Nazara experienced after listing in March 2021. Mittersain pointed to the positive impact on brand visibility, credibility, and attracting global partnerships.
👉Freedom from VC Agreements:
Mittersain also highlighted the liberation from restrictive agreements with Venture Capitalists (VCs). He described the shift from negotiating terms with VCs to a more democratic system where all shareholders have equal rights.
👉Challenges of Transparency and Disclosure: