Stories
MFs and VCs Clash Over New-Age Block Deals at Moneycontrol Startup Conclave
- •India's new-age stock market sees a surge in large block deals as early VC and PE investors sell stakes in companies they backed before IPOs.
- •Mutual funds are increasingly buying these shares, while VCs argue that selling after years of holding is a natural part of the investment cycle.
- •The debate intensified at the Moneycontrol Startup Conclave 2026, with ICICI Prudential AMC CIO S Naren flagging changing ownership structures and VCs defending their exits.
- •Block and bulk deals involving new-age companies exceeded Rs 67,000 crore in 2026, with a significant portion occurring between May and September as post-IPO lock-ins expired.
- •VCs like Accel, Elevation Capital, and Lightspeed India emphasize their long holding periods (10-12 years) and fiduciary duty to LPs, stating that ownership naturally shifts once a company goes public.
Key Questions Answered
Mutual funds and venture capitalists are divided because ICICI Prudential AMC CIO S Naren has raised governance concerns over founders being left with smaller stakes as private-market investors cash out. Conversely, venture capitalists argue that selling stakes after long holding periods of nearly a decade is a normal part of the investment cycle and necessary to return capital to limited partners.
Block and bulk deals involving listed new-age companies crossed Rs 67,000 crore in 2026, with Prime Database recording 153 sell-side transactions worth approximately Rs 67,170 crore between January 1 and September 18. The vast majority of this activity, about 92 percent or roughly Rs 61,640 crore, took place between May and September as post-IPO lock-ins expired.
Venture capital firms typically maintain long holding periods before executing exits, with Accel averaging 12 to 13 years, Elevation Capital averaging 10 to 12 years, and Lightspeed India averaging upwards of nine years.
