Startups rushing to raise more funds at higher valuations risk a difficult situation amid the current liquidity crunch as it narrows equity upside, said Zerodha CEO and co-founder Nithin Kamath. Liquidation preferences, which allow investors to recover their investment before anyone else in a business, need to be fine-tuned to match underlying fundamentals to succeed, he added. Kamath pointed out the discrepancy between uneven valuations and the market’s fundamentals, which may prompt founders and leaders at late-stage startups to exit, potentially putting their firms’ survival at risk. Kamath’s comments come as fundraising for Indian startups falls to its lowest in four years.
Bank stocks lead market recovery as Nifty closes above 25,000
On Monday, market indices Sensex and Nifty showed a recovery following heavy intraday losses. Investors reacted positively to gains in banking stocks driven by foreign