Insight certainty 4/5 debate potential 2/5

Preparing for an IPO takes two years, not six months

Rangarajan Krishnan · Understanding the Trillion-Dollar lending market in India ft. Rangarajan Krishnan · Mar 6, 2023 · at 4:35

Rangarajan Krishnan, CEO of Five Star Business Finance, discusses the realistic timeline and internal readiness required before launching an IPO.

0:00 / 0:33exact quote · 33.6s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“You know, one of the common questions that get asked in an IPO is how much time does it take to do an IPO? And the most common answer that you might hear is that it takes anywhere between six to nine months. I think the answer is wrong. It really depends on whom you are asking this question for. Our own IPO journey, I want to divide it into three phases. The first phase starts Which is completely internal to the company. So from the time that you start thinking that potentially you want to do an IPO, you will have to work hard for at least the next two years, I would assume, where you are getting a series of things right.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Rangarajan Krishnan

Insight
Exact cash-flow precision is unnecessary if debt-burden margins are safe
“You are really not worried or, you know, it's not that important to exactly pinpoint with Six Sigma accuracy on what is this cash flow? Is it 25,000 or 26,330 thousand rupees? You know, it doesn't matter. You have to be in the ballpark because then you have en…”
Rangarajan Krishnan Mar 6, 2023 ▶ 30:34 Understanding the Trillion-Dollar lending market in India ft. Rangarajan Krishnan
Insight
Borrowers prioritize repaying home loans over consumer goods in downturns
“Anybody who takes a loan has an intention to repay the loan. That intention stays good as long as the times are good. But everybody goes through good and bad times. I think when the times are bad, the same person behaves very differently for different products…”
Rangarajan Krishnan Mar 6, 2023 ▶ 18:08 Understanding the Trillion-Dollar lending market in India ft. Rangarajan Krishnan
Prediction Not checkable as stated
Krishnan: Fintechs focus on large cities and will take long to penetrate deeper
“I think fintechs are more focusing on larger cities and tiers and still take a lot of time to penetrate deeper.”
Rangarajan Krishnan Mar 6, 2023 ▶ 31:30 Understanding the Trillion-Dollar lending market in India ft. Rangarajan Krishnan
Insight
Lenders only realize their profit in the final EMIs of a loan
“The lender makes his monies only in the last few EMIs. If you have, let's say, a 60 month loan, the first 55 months, if he repays well, you don't make monies. You know, you're getting your principal back, you're, you know, repaying your borrowed monies, you're…”
Rangarajan Krishnan Mar 6, 2023 ▶ 47:39 Understanding the Trillion-Dollar lending market in India ft. Rangarajan Krishnan
Insight
Being a startup founder is overly glamorized due to survivorship bias
“I honestly believe that at some level today there is being a founder is too glamorous. I'm not sure if it's good for all. It's good for some, but we see more success stories than multiple failure stories.”
Rangarajan Krishnan Mar 6, 2023 ▶ 55:07 Understanding the Trillion-Dollar lending market in India ft. Rangarajan Krishnan
Insight
First institutional investors are for business validation, not valuation
“The first investor, you are bringing him not for valuation, right? You know, you are bringing him for validation of your business model.”
Rangarajan Krishnan Mar 6, 2023 ▶ 20:42 Understanding the Trillion-Dollar lending market in India ft. Rangarajan Krishnan
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 300 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.