The lesson Zepto forgot: Get off your high horse

Public markets have a clear message for startup founders: climb down from lofty valuations and investors may back you. Zepto learnt this the hard way, shelving its initial public offering (IPO) after domestic institutional investors balked at its pricing expectations. Yet the record of listed startups suggests there is no shortage of appetite for the sector.

An FE analysis finds that nearly two-thirds trade above their issue price. The catch is that investors are becoming increasingly selective, rewarding companies that demonstrate execution and a credible path to profitability rather than those anchored to their last private funding round.