From Burn to Burn: What is behind UPS UPS ‘Preo Glow UPS?

With the maturity of the India’s ecosystems in India, a curious pattern appeared that the losses of making losses suddenly turned into a profitable before public subscriptions. From the giants of delivery of food to technology conflicts, Philip has a profit before reassuring with a familiar-controversial story.

Take a zipto, for example. Commerce Start-UP Quick Commerce, which is looking for a general list by the end of 2025, has made great transformations in the financial play book. According to the co -founder Aadit Palicha, the company reduced its cash burning by approximately 65 % in only five months. “EBITDA has improved by 20 absolute percentage points (2000 basis points) from January 2025 to May 2025, and we approach one area of ​​the number.” We still grow about 20 % in the government during that period, at a rate of 4 % to 5 % on the face of the month.

Another example is URBAN COMPANY, which started its operations in 2014 and recently presented the Red Hering Prospectus project (DRHP). The home services platform turned into a positive cash flow only in 2024 after several Fish of negative cash flows. For the year ending in March 2024, revenues of 828 rupees were recorded, as well as a loss of 93 rupees – an improvement that industry monitors say may help increase the investor confidence in the subscription next public.

The condition of Ola Electric is well known. The company is still struggling to make profits.

These cases are not isolated. It reflects a broader trend among startups looking to arrange their books and show operating discipline often in time for the first time in the public market. Is it a sign of the maturity of original business or smart financial engineering?

“Surprising profitability before the public subscription can result from improving unit economies or losing previous investments. But the important thing is that investors get enough background to determine whether this is a sustainable trend or just the peak of a natural business cycle,” explains Gaurav VK Singhvi, co -founder of Avinya Ventures.

On paper, these companies associated with public subscription appear healthier than ever. But those familiar with the industry warn of the paradox: the high profits before the infection do not always translate into a long -term performance after virtual.

“Increasing profits before the public subscription to bring the highest version price is not a healthy trend. Distinguished investors are concerned about such tactics,” says Jyoti Prakash Gadia, MD at Resurrage India, registered commercial banking.

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Many startups adopt aggressive tactics-although they are not necessarily illegal-to reformulate their financial data. This includes changing consumption methods, taking advantage of operating costs, recording asset sales for one time, and setting revenue recognition forms.

“The shift from the written to the method of straight consumption can lead to the inflation of profits in the short term,” notes seriously. “Likewise, the gains once for the sale of old assets may give an illusion of profitability.”

Some also rely heavily on modified measures such as EBITDA profits or other acceptable accounting principles, which can be more generous representations for the company’s health than standard accounting. While such standards can provide clarity to the basic processes, especially during the high growth stages, they also open the door to selective disclosure.

“As long as these measures are transparent and rooted in proper business decisions, they constitute a legitimate part of preparing a company to include,” he adds.

But transparency, both experts, warn, often in a state of display.

The auditors play a pivotal role in verifying the validity of the company’s financial statements. However, it works in a frame that allows a degree of discretionary power. This means that companies, especially startups, must be held for a more compact auditing.

“The auditors should be more cautious while checking the startup books. They must evaluate whether the profit margins are sustainable for expectations,” says Jadia. “More disclosure about the assumptions behind these expectations – besides accountability for the abuse of reporting.”

This anxiety is not only worried about the inflated profits, but also the lack of clarity in the long-term competitive advantage, unit economies, and the retention of customers-more factories indicating the validity of the real business than the final result for one year.

So, what should the retailers watch?

“We look at the trends that go beyond mere profitability,” says Singh. “The quality of revenue, the retention of the customer, the cost structure, the cash flow, and whether there is a sudden decrease in spending on marketing without matching the efficiency of the acquisition – these are the real signals.”

Seriously, this is a warning note: “The real scent test is the safety of promoters. Fly-Light founders who temporarily inflated the financially enlarged financial threat, even if they seem to be like a profitable marketing project.”

Both experts agree that the current disclosure system needs to be strengthened but with a balanced approach.

“We must ask for better data on profitable assumptions, customer standards and financial strategies,” says Jadia. “At the same time, the system should not strangle innovation or prevent capital access to real companies.”

Singhvi suggests that unify disclosures on unit economies, dust data, and the date of operation can block the gap without an overwhelming institutional.

In the end, the key lies in telling honest stories, not only profitable data schedules.

“The profitability that is in line with the strategy must be long -term, not only the timing of the public subscription, the standard,” Singh. “This is what builds confidence – and the market value – in the long run.”

With the public subscription pipeline in India enlarged with the starting starting names, it is perhaps time to look beyond profits on paper – and in the strategy behind the data schedules.