IPO: Why are late-stage startups relying on private credit before their IPOs?

Mumbai: Several late-stage startups are increasingly raising interim private credit ahead of their initial public offerings (IPO) to buy out early investors to present cleaner capital structures to the public and boost mainboard valuations on listing. InMobi Technologies, Zepto, and Zetwerk are already in the market for such credit.

InMobi is in talks with private credit funds to raise $500 million in two tranches of $250 million each before its proposed listing on the exchanges. The advertising technology company, which is backed by SoftBank among…