Consumer internet investor Prosus has made it clear that initial public offerings (IPOs) are not an exit strategy. Instead, they are milestones in the growth journey of portfolio companies.

Ashutosh Sharma, Head of India Ecosystem at Prosus, emphasized that the firm continues to invest in companies like Urban Company and Bluestone, even during their IPO phases. Speaking to Moneycontrol, Sharma explained that listing provides benefits such as liquidity, brand recognition, and faster fundraising, but does not mean Prosus steps away.

“Listing is an important milestone but it’s not the end. We didn’t sell a single share in Bluestone and we’re not selling in Urban Company. In fact, we bought in both pre-IPO rounds,” Sharma said.

Urban Company IPO: A Key Moment in Prosus’ Portfolio

Urban Company launched its ₹1,900 crore IPO on September 10, 2025, marking the third Prosus-backed Indian company to list in under a year, following Swiggy and Bluestone.

Sharma revealed that Prosus has been actively investing across sectors despite market volatility, writing three cheques worth $80–100 million each over the past year. The focus spans financial services, artificial intelligence, consumer tech, and B2B platforms.

This indicates that Prosus is not only investing in consumer-facing businesses but also in foundational technologies that drive India’s expanding digital economy.

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Long-Term View: Beyond Tariffs & Geopolitics

One of the standout points Sharma made was Prosus’ long-term view on India. He noted that while short-term investors may worry about tariffs or geopolitical shifts, Prosus assesses India from a 10–25 year horizon.

“Over the long term, if the country keeps growing, there’s plenty of appetite for the areas we invest in,” Sharma said.

This approach enables Prosus to continue investing aggressively, even when global uncertainties might keep other investors on the sidelines.

Preparing Companies for Public Markets

According to Sharma, taking a company public comes with its own challenges:

Educating New Shareholders: Many new-age companies don’t have direct global equivalents. For example, Urban Company’s model—offering on-demand services like plumbing or salon treatments—is unique and needs explaining to investors.
Founder & Management Shift: Going public means founders move from engaging with a handful of investors to thousands, with constant scrutiny.
Balancing Short-Term & Long-Term Goals: Public markets demand quarterly performance, but founders must balance this with their long-term ambitions.

These factors, Sharma said, are crucial in preparing companies for a successful listing.

IPO Timing: Business Maturity Over Exit Pressure

Prosus does not view IPOs as exit opportunities. Instead, the readiness of the business determines the timing.

Sharma explained that public markets value predictability, so companies must have a clear core business, stable operations, and strong visibility into growth and profitability before listing.

He also noted that India’s secondary market is robust, which means investors looking for liquidity don’t necessarily need IPO exits.

Evolution of Domestic Investors

Since the tech IPO boom of 2021, domestic investors in India have also matured. Sharma likened the process to a child learning to walk—falling at times, but steadily gaining confidence.

He believes Indian investors are becoming more comfortable with new-age business models, especially those that prioritize growth with a clear profitability path.

The recognition of new moats, such as network effects in marketplaces (beyond just distribution strength) is another sign of investor evolution.

What Kind of Companies Will Markets Accept?

According to Sharma, Indian investors are savvy and value companies with clear growth potential. While profitability remains important, markets are increasingly willing to support growth-focused companies if they present a credible roadmap to profits.

For consumer companies, public listings also provide brand visibility and a halo effect, further strengthening market acceptance.

Portfolio Outlook: More Companies Ready for IPOs

When asked about future IPOs, Sharma noted that several Prosus-backed companies are mature enough to list within the next 12–18 months. However, the decision ultimately lies with the founders and boards of those companies.

He also highlighted a shift in founder mindset, with more entrepreneurs aiming to build long-term, publicly listed businesses rather than seeking early exits.

Key Highlights

Urban Company’s ₹1,900 crore IPO marks the third Prosus-backed listing in a year.
Prosus views IPOs as growth milestones, not exits; it continues investing in firms like Bluestone and Urban Company.
Long-term investment horizon (10–25 years) keeps Prosus bullish on India, despite global uncertainties.
Public market readiness depends on business maturity, not exit pressure.
Domestic investors maturing post-2021 tech IPO boom, now valuing network effects and profitability paths.
More Prosus portfolio companies may go public in the next 12–18 months.

Conclusion

Prosus’ stance on IPOs underscores a new era for India’s startup ecosystem. Rather than treating public listings as cash-out opportunities, long-term investors like Prosus see them as strategic milestones that strengthen companies.

With Urban Company’s IPO, Prosus has shown its commitment by investing further instead of exiting. This approach reflects its confidence in India’s long-term growth story and in the resilience of domestic capital markets.

As Indian investors become more familiar with tech-led business models and founders embrace the public route, the country could witness a steady stream of high-quality IPOs in the years ahead.