Startup Founders Are Betting Big on Themselves Ahead of IPOs — But What’s Really Driving This Buyback Frenzy?

India’s Startup Founders Are Doubling Down — With Their Own Money

In a bold new wave ahead of India’s upcoming IPO season, top startup founders are buying back stakes in their own companies — and they’re doing it with serious skin in the game.

From Lenskart to Zetwerk, InMobi, and Meesho, founders are scooping up shares, pumping in personal capital, and even raising debt to increase their control just before going public.

This isn’t just confidence — it’s a calculated power move. And it’s happening across India’s biggest late-stage startups.

The Shocking Lenskart Buyback: Peyush Bansal Buys In at 90% Discount

The most eye-catching move? Peyush Bansal, cofounder of Lenskart, just bought back a 2.5% stake for ₹222 crore — from SoftBank and Chiratae, no less. But here’s the kicker:

He bought in at a $1 billion valuation — one-tenth of Lenskart’s last private round ($10 billion). Just months before its IPO.

This isn’t just rare. It’s strategic timing, and possibly the largest founder-led buyback in India’s current IPO wave.

Zetwerk Founders Raise Debt to Increase Stake

In another gutsy move, Zetwerk’s cofounders Amrit Acharya and Srinath Ramakkrushnan pumped in ₹600 crore — financed by personal debt — to raise their stake by 2%.

That’s not a token investment. That’s conviction backed by cash (and credit).

The IPO Pipeline Is Heating Up: Founders Get Ready

Here’s what other founders are doing:

• Amagi’s founders: Bought shares worth ₹9 crore
• InMobi’s cofounders: Pooled in ₹32 crore alongside investor Vatera Pte Ltd
• Meesho’s Vidit Aatrey and Sanjeev Barnwal: Boosted holdings through massive ESOP allotments

All four startups are expected to file for IPOs this year. And this flurry of founder buy-ins is no coincidence.

Why Are Founders Doing This?

1. Control: Increasing personal stake ahead of IPO means more influence post-listing.
2. Signal: Tells the market — and public investors — that founders still believe in the long-term growth story.
3. SEBI’s June 2025 reforms: Made ESOPs easier to exercise pre-IPO, unlocking a new window for ownership boosts.

Let’s not forget: IPOs often mark the last big valuation pop before market reality sets in. Founders want to show strength — and they’re willing to put money behind it.

But Here’s the Catch…

While it looks great on paper, critics point out that many of these founders have already enjoyed massive liquidity events — selling shares in previous rounds and earning tens (or hundreds) of crores pre-IPO.

So is this a genuine vote of confidence? Or just a smart PR move to keep retail investors engaged?

And what happens post-IPO — when stock prices wobble and founder buybacks become rare?

Flashback: This Isn’t New — Just Bigger

This playbook isn’t new. In the 2021 IPO boom, Zomato’s Deepinder Goyal received 368 million stock options, and Delhivery’s founders took home shares worth ₹25 crore each. Swiggy, ahead of its 2024 IPO, launched a $271M ESOP plan — with $200M going to founder Sriharsha Majety.

So yes, founders buying in isn’t new — but this time, it’s bolder, bigger, and more visible.

Final Word: Power Move or Optics Game?

As India’s startup IPO wave builds momentum, founder-led buybacks send a strong psychological signal to the market. Whether it’s genuine long-term faith or savvy optics, one thing is clear: founders want to be seen betting big before the spotlight hits.