In 2025, India’s startup ecosystem is experiencing a resurgence. Following a period of market correction and funding slowdown, investor sentiment is stabilizing, with a renewed focus on sustainability, profitability, and transparency. While venture capital continues to fuel innovation, investors are now applying far greater scrutiny to the financials and operational health of startups before closing a deal. This shift has opened up an important space for chartered accountants (CAs), who are increasingly becoming critical partners in conducting startup due diligence and offering valuation support.
Gone are the days when startups could close funding rounds based on promising ideas and traction slides alone. In today’s climate, investors are demanding accurate financial models, clean cap tables, verifiable books, and sound governance frameworks. Chartered accountants, with their deep financial expertise and regulatory understanding, are stepping in to ensure that startups are investment-ready and compliant with statutory norms. Whether a startup is preparing for its seed round, Series A, or even acquisition, the role of a CA now goes far beyond basic tax filing or bookkeeping.
One of the most valuable services CAs are offering in 2025 is financial due diligence. Investors want assurance that a startup’s financial statements reflect the true state of affairs. This includes not only reviewing revenue recognition, expense classification, and asset reporting but also assessing working capital cycles, debt obligations, and financial control systems. Startups often operate in dynamic and cash-sensitive environments, where financial discipline may take a backseat. CAs help bring structure and clarity to financial data, making it more digestible for potential investors.
CAs are also helping clean up cap tables — documents that show how equity is distributed among founders, investors, and employees. Many startups have messy cap tables due to informal share transfers, missing documentation, or unaccounted ESOP commitments. A well-maintained and legally validated cap table is a prerequisite for any serious investor. By working with legal teams and company secretaries, CAs can support startups in regularizing these issues and presenting a clear picture to prospective funders.
Another crucial area where CAs are playing a growing role is in valuation advisory. In 2025, valuation is no longer just about gut feel or market sentiment. Regulatory compliance, especially under Income Tax Rule 11UA and FEMA for foreign investments, requires defensible and audited valuation reports. Whether it’s a 409A valuation for ESOPs, a DCF (Discounted Cash Flow) method for fundraising, or a Net Asset Value (NAV) basis for early-stage companies, investors want transparency and consistency. CAs, with formal valuation training and experience in business modelling, are now being hired by both startups and investors to prepare or review valuation reports.
Beyond traditional services, CAs are also helping startups implement foundational internal controls that prepare them for scale. Investors increasingly look at whether a startup has basic financial hygiene in place — such as expense approval policies, vendor onboarding protocols, monthly MIS reporting, and audit trails. Chartered accountants with experience in internal audits or financial system design are helping startups install simple but scalable controls. This helps the business mature and assures investors that their funds will be well-governed.
CAs also play a strategic role during deal negotiations. By highlighting financial red flags early, they help startups fix issues before they become deal-breakers. They also assist with scenario modelling to help founders understand how different investment terms — such as liquidation preferences, valuation caps, or anti-dilution clauses — can impact their shareholding and decision-making power in the long run.
Startups, in turn, benefit from working with CAs who understand the pace and pressure of entrepreneurship. In 2025, many CAs are specializing in startup finance, offering virtual CFO services, investor-ready reporting, and pitch deck review alongside core compliance. This gives founders an integrated partner who not only ensures statutory compliance but also supports business growth.
As India moves toward a more regulated and mature startup environment, the relevance of CAs in the startup funding lifecycle will only grow. From preparing startups for due diligence to offering valuation services compliant with Indian and international norms, chartered accountants are positioning themselves as indispensable advisors in the startup ecosystem.
