**Access to Capital: A Key Advantage for Companies**
Access to capital—both public and private—plays a crucial role in determining a company’s long-term success, according to Vijay Shekhar Sharma, founder and CEO of Paytm. Speaking at the Startup Mahakumbh in New Delhi, he emphasized that visibility and access to capital are essential for all companies. “If you don’t need the capital, then the listing doesn’t matter,” he stated, highlighting that the method of obtaining capital is secondary to the actual need for it.
### The Importance of Capital Access
– **Public vs. Private Capital**: Sharma noted that while some may view public listings or private status as advantages, the real moat lies in the ability to access capital. He cited Flipkart’s ability to raise billions in private funding as an example of capital’s significance.
– **Paytm’s IPO Experience**: Paytm raised ₹18,300 crore in its November 2021 IPO, which was the largest in India at that time. However, the company’s shares experienced a significant decline, losing nearly 70% of their value shortly after the listing.
### Perspectives from Industry Leaders
Sachin Bansal, co-founder of Flipkart, expressed a contrasting view, stating that public markets are the best source of capital. He plans to list his financial services venture, Navi, in the current fiscal year, believing that public markets can provide the necessary capital if managed properly. Navi previously received approval for a ₹3,350-crore IPO in September 2022 but postponed the plan due to unfavorable market conditions.
### Regulatory Challenges in Fintech
The fintech sector is currently facing heightened regulatory scrutiny, which is reshaping strategies and timelines for founders. Bansal remarked on the importance of regulators as stakeholders, stating, “In fintech, the regulator becomes an extremely important stakeholder.” He likened navigating regulatory changes to being in a boxing ring, where one must continuously adapt and respond to new challenges.
Alok Bansal, co-founder and executive vice-chairman of PB Fintech and Policybazaar, echoed this sentiment, emphasizing that regulators are now integral players in the business landscape.
### Conclusion
As companies navigate the complexities of capital access and regulatory environments, the question remains: How will these factors shape the future of fintech and other industries?
**FAQ: What role does access to capital play in a company’s success?**
Access to capital is vital for a company’s long-term advantage, as it enables growth, innovation, and the ability to respond to market changes effectively.