In a bid to prepare for public listings, startups are in a race to secure top-tier chief financial officers (CFOs) with extensive market experience.
SUGAR Cosmetics recently announced the appointment of Naveen Bhadada as its CFO, bringing over 19 years of experience to the company. Similarly, PhysicsWallah appointed former Blinkit CFO Amit Sachdeva as its CFO in November last year. Over the past year, around 13 startups such as Captain Fresh, Wakefit, The Sleep Company, Ather, Licious, UpGrad, Perfios, PhysicsWallah, Unacademy, LensKart, Acko, InCred, and CarDekho have also on-boarded experienced CFOs, mostly in anticipation of going public.
While some of these startups have openly declared their IPO intentions, others are working towards the goal. However, one thing remains constant, startups tend to actively seek new CFOs as soon as they start preparing for public markets. “Companies are replacing CFOs to bring in professionals with public market experience, someone who can craft a financial narrative for investors and analysts. With the current surge in IPOs, companies with ambitious yet calculated market access strategies need CFOs who understand these evolving business models,” said Divya Momaya, founder and director of MentorMyBoard.
“The mindset required for an IPO is vastly different from that of a Series A or Series B startup. IPO preparation involves rigorous compliance and financial reporting standards, requiring seasoned professionals to lead the way,” said Vikram Gupta, founder and managing partner of IvyCap Ventures.
Startups traditionally hire CFOs on a budget, often bringing in finance leaders focused on managing cash flows and operational budgets. However, going public requires a CFO with deeper knowledge of regulatory compliance, investor relations, and market positioning.