Growth at any cost is over, investors back sustainable businesses: Industry leaders

India's private capital ecosystem is undergoing a structural shift, with investors increasingly prioritising sustainable growth, disciplined capital allocation and stronger governance over rapid revenue expansion, according to industry leaders at the Stride Forward 2026 summit in New Delhi.

Speaking at a panel discussion on "How Private Markets Are Reading Growth Across Sectors", executives from HSBC Innovation Banking, DLF, TBO Tek and Stride Ventures said businesses that demonstrate improving unit economics, robust balance sheets and institutional governance are better positioned to attract capital in an increasingly selective funding environment.

Investors prioritise sustainable businesses

Apoorva Sharma of Stride Ventures said investor expectations have evolved substantially over the past few years, with funding decisions now driven by the durability of business models rather than topline growth alone.

"The question is no longer how quickly a business grows, but whether that growth is sustainable," she said, adding that investors are closely tracking whether EBITDA losses narrow as revenues scale, alongside cash conversion cycles and balance-sheet strength. Companies that continue to burn more cash despite higher revenues are likely to face tougher scrutiny from investors, she added.

Jonathan Yip of HSBC Innovation Banking echoed the sentiment, saying lenders increasingly assess whether startups have transitioned from founder-led organisations to institution-led businesses with stronger governance, compliance and risk management frameworks.

"Investability is very different from bankability," he said, adding that banks focus on execution capability, governance and sustainable growth before extending capital.

AI investment shifts towards infrastructure

Yip also said the AI investment landscape is evolving rapidly. While the previous startup cycle was dominated by software-as-a-service (SaaS) companies, much of the current investment activity is centred on AI infrastructure.

"We're seeing far more industrial applications of AI, data centres, GPU financing and energy infrastructure. That requires patient capital and a very different approach to financing," he said, noting that sovereign capital and long-term investors will play a bigger role in funding the next generation of AI infrastructure.

Sector-specific lessons

Aakash Ohri, managing director and chief business pfficer at DLF Home Developers Ltd, said financing conditions in the real estate sector have improved considerably since the implementation of the Real Estate (Regulation and Development) Act (RERA), with banks placing greater emphasis on developer credibility and execution.

He also pointed to a changing buyer profile, saying people aged between 25 and 35 are increasingly entering the housing market and spending more on premium homes and lifestyle-oriented residential developments.

Meanwhile, TBO Tek co-founder Ankush Nijhawan said disciplined capital allocation and a diversified business model helped the travel technology company navigate the COVID-19 downturn. Looking ahead, he expects artificial intelligence to improve productivity by automating customer support and operational processes, while the industry's core demand-supply network will continue to rely on long-term relationships.