CFOs in High Demand Among Startups as IPO Wave Sweeps Across India For startups eyeing an IPO, attracting top CFO talent requires a multi-pronged approach. The key is to start early, ideally 18-24 months before the intended IPO.
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Chief Financial Officers (CFOs) are in high demand among startups as there is a surge in initial public offerings (IPOs) which heightens the need for seasoned finance professionals.
A recent report by Redseer Strategy Consultants predicts a surge in India's IPO-ready new-age companies, estimating 40 by FY25 and a staggering 90 by FY28. SaaS, B2C product companies, and fintech lead the pack in this IPO frenzy. The role of CFOs in Indian startups has transitioned from being a support function to a strategic imperative.
The surge in CFO demand is being driven by three key factors, explains Aditya Narayan Mishra, MD and CEO of CIEL HR.
"First, there's a massive wave of startups maturing into the pre-IPO stage, each requiring seasoned financial leadership. Second, today's business landscape demands CFOs who can do more than just manage books – they need to be strategic advisors who can navigate complex fundraising, M&A opportunities, and regulatory compliance. Finally, investors are becoming increasingly focused on sustainable growth and profitability metrics, making the CFO role critical for strategic decision-making."
Some late-stage startups are trying to re-pivot by moving from the US to India and then go public. "This has fueled the demand for CFOs as moving countries can be a complex process. You need reasonable expertise to go and do that. Then there are companies which have grown but now want to bring operational rigor and compliance processes so that they are public market ready," said Anshuman Das, CEO and Founder of Longhouse Consulting.
"Then, there is another set of companies which are still early but they no longer want to go through that typical traditional route of 4-5 rounds of funding, bleed a lot, and then go public. They are also trying to think through as to how to build a little sustainable right business with right financial and operating metrics," Das said.
Finally, the demand for startups is also intensified among startups which are still in their early stage but are looking to build a more meaningful business, a more profitable business, a more compliant. "It's a systematic, structural shift in the thinking of the way the startups ecosystem has operated," Das added.
For startups eyeing an IPO, attracting top CFO talent requires a multi-pronged approach. The key is to start early, ideally 18-24 months before the intended IPO. Offering competitive ESOP packages is crucial, but equally important is demonstrating a clear path to public listing and strong corporate governance.
"We are seeing successful startups build relationships with potential CFO candidates well in advance, often bringing them on as advisors first. This creates a natural pipeline and allows both parties to evaluate fit before making long-term commitments," said Mishra of CIEL HR.
He added that the CFO landscape has also evolved beyond traditional finance. "Modern CFOs are becoming tech-savvy leaders who can leverage data analytics for strategic planning and work closely with boards and investors. For startups, having the right CFO isn't just about IPO readiness – it's about having a strategic partner who can help scale the business sustainably. The current market dynamics suggest this trend will only intensify in the coming years."
