The finish line
isn’t really the end.
Exit is the most misunderstood stage of the startup journey. Whether you’re headed to an IPO, a strategic acquisition, or a private equity buyout — the decisions you make in the 18 months before exit define what you actually take home..”
What idea stage founders struggle with the most
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Learn how a startup acquisition actually works — with real timelines, what founders usually miss, and what you should do right now if you ever get that call.
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Here’s the no-jargon breakdown of ESOP tax in India right now, with real examples so you can calculate exactly what you (or your team) will owe.
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Exit StageHow To
The Indian Startup Exit Guide 2026: IPO, M&A, Secondary – Everything founders need to know
You’ve built the company, raised the rounds, and hit scale. Now comes the part no one talks about enough: the startup exit. For the first time in India’s startup history, …
What is the minimum revenue to qualify for an SME IPO in India?
SEBI’s SME IPO eligibility requires a post-issue paid-up capital between ₹1Cr and ₹25Cr for the BSE SME platform. There is no strict revenue minimum, but most merchant bankers want to see at least 3 years of profitable operations or strong revenue growth. The mainboard (NSE/BSE) requires post-issue capital exceeding ₹10Cr and minimum 3 years of track record.
How is ESOP taxed when a startup is acquired in India?
ESOP taxation in India has two events: (1) Exercise — when you convert options to shares, the difference between the Fair Market Value (FMV) and exercise price is taxed as a perquisite under Income from Salaries — your employer deducts TDS on this. (2) Sale — when you sell the shares post-acquisition, capital gains tax applies. If held for more than 24 months, it’s Long-Term Capital Gains at 10% above ₹1L. Always consult a CA to plan the timing of exercise before an acquisition event.
How long does a typical startup acquisition take in India?
From first approach to funds in your bank, most Indian startup acquisitions take 6–12 months. The process involves: initial discussions (1–2 months), LOI and exclusivity (1 month), due diligence (2–3 months), definitive agreement drafting (1–2 months), regulatory approvals like CCI if required (1–3 months), and closing. Acquirers with complex international structures or government entities take longer.
knowledge drop.
