Question lingers over status of pre-IPOs

India has become a hub for several young and fast moving companies with tremendous potential to achieve exponential growth. However, most of them struggle during their infancy period.

Often, the main reason for the struggle is  inadequate resources and a death of capital for sustainability and expansion.

The debt market, too, is hesitant to invest in these young companies due to uncertainties that this lack of access to capital creates and how it may impact future growth.

Priti Suri is the proprietor of PSA. Aditi Mohan is an associate.