NSE’s Ashish Chauhan says founders no longer have to choose between funding and ownership.
Ashish Chauhan, the Managing Director and CEO of the National Stock Exchange (NSE), is making a strong case for public listing as a means for startups and Micro, Small and Medium Enterprises (MSMEs) to scale up their operations without sacrificing control.
According to Chauhan, founders no longer have to make an impossible choice between raising funding and maintaining ownership of their businesses. “Public listing allows founders to raise growth capital without surrendering control of their companies,” he said on Friday.
This is a significant shift in perspective, as public listings have traditionally been seen as a means for large companies to raise capital, but at the cost of diluted ownership and control. However, with the increasing popularity of startup listings on the NSE and other exchanges, the landscape is changing.
Several startups in India, such as Nykaa and Zomato, have already taken advantage of this opportunity, listing on the NSE and raising significant capital without sacrificing control. Chauhan is now urging more startups and MSMEs to follow suit and view public listing as a strategic tool for scaling up operations.
“What this means” for startups and MSMEs is a new level of flexibility and freedom to raise capital on their own terms. No longer do they have to choose between funding and ownership; instead, they can pursue both simultaneously.
This development is expected to have a significant impact on the Indian startup ecosystem, enabling more companies to access the capital they need to grow and scale, while maintaining control and ownership.
