Why More Growth Companies Are Looking Beyond the Traditional IPO
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Enhanced Games at Resorts World Las Vegas. PHOTO: FACEBOOK@ENHANCEDGAMES
Enhanced Games reached the public markets in less than six months.
In an era where traditional IPOs can take more than a year to complete, the speed of the company’s merger with A Paradise Acquisition Corp. (NASDAQ: APAD) stands out, particularly given the significantly tighter regulatory scrutiny surrounding SPAC transactions since 2021.
The transaction highlights why some growth-stage companies are evaluating special-purpose acquisition companies (SPACs) as a viable alternative to the traditional IPO process.
Led by Dr. Aron D’Souza and backed by investors including Peter Thiel and Christian Angermayer, Enhanced Games announced its Business Combination Agreement with APAD in November 2025. The transaction closed in May 2026, bringing the company to the public markets materially faster than the timeline typically associated with a conventional IPO.
For decades, the traditional IPO has been considered the default route for private companies entering the public markets. But for many high-growth businesses today, the process has become increasingly slow, expensive, and difficult to execute efficiently.
A conventional IPO can take well over a year to prepare, involving extensive audits, regulatory reviews, underwriter coordination, investor roadshows, and careful timing against market conditions. During that period, companies remain exposed to volatility, shifting investor sentiment, and delayed access to capital. According to EY, many companies postponed planned IPOs amid market volatility and uncertainty surrounding U.S. tariff announcements, highlighting how sensitive IPO execution can be to broader market conditions.
For businesses operating in fast-moving industries, timing matters. Delayed access to liquidity can slow expansion, hiring, acquisitions, partnerships, and product development at critical stages of growth.
That is one reason why the merger between Enhanced Games and APAD is notable. The SPAC structure allowed Enhanced Games to negotiate valuation, governance terms, and financing arrangements early in the process, compressing many of the steps normally associated with a conventional IPO into a single transaction.
Enhanced Games operates across sports, media, performance science, and wellness, sectors that require significant upfront investment and rapid execution. Earlier access to public capital provided the company with liquidity, visibility, and strategic flexibility at an important stage of growth.
The public listing also gives the company tradable equity that can potentially support acquisitions, partnerships, athlete compensation structures, sponsorship arrangements, and future fundraising initiatives. These capabilities are particularly relevant in industries evolving as rapidly as sports entertainment, wellness, and human-performance science, where speed itself can become a competitive advantage.
The deal also highlights one of the SPAC market’s core advantages: the ability to combine capital raising and public-market entry within a single process.
Beyond speed, the SPAC structure offered Enhanced Games another major advantage: earlier visibility into valuation.
In a traditional IPO, pricing is largely determined near the end of the process through institutional book-building and investor demand during the roadshow phase. Even late-stage IPO candidates can face valuation cuts, downsized offerings, or postponed listings if market conditions weaken.
Recent IPO markets have repeatedly demonstrated this risk. Instacart went public in 2023 at an approximate US$9.9 billion valuation, which is dramatically below the US$39 billion private valuation it achieved during the 2021 market peak. Similarly, WeWork’s failed IPO attempt became one of the clearest examples of how rapidly investor sentiment can shift during the IPO process.
SPAC mergers operate differently.
Enhanced Games secured an implied enterprise valuation of approximately US$1.2 billion months before closing the transaction. While the merger still required SEC review and shareholder approval, the company gained significantly greater visibility into deal economics much earlier in the process.
That certainty is particularly valuable for growth companies whose valuations are tied more closely to long-term platform potential than near-term profitability.
Rather than relying entirely on shifting IPO market sentiment, the SPAC structure allowed Enhanced Games to negotiate around its broader growth strategy and future expansion plans from the outset.
The Enhanced Games transaction also reinforces why some growth-stage companies evaluate SPACs as an alternative to the traditional IPO process.
Traditional IPO investors often prefer businesses with long operating histories, stable earnings, and predictable growth profiles. Many expansion-stage companies simply do not fit that model yet, even if their long-term opportunities are substantial.
SPACs offer a different pathway.
Instead of waiting years to achieve the operational maturity typically expected in a conventional IPO, companies can access public-market capital earlier while still in growth mode.
For Enhanced Games, early access to the public markets provides more than capital. Public equity can support acquisitions, partnerships, athlete compensation structures, sponsorship arrangements, and future fundraising efforts. These capabilities are particularly important in sectors evolving as rapidly as sports entertainment, wellness, and human-performance science, where speed itself can become a competitive advantage.
The transaction also highlights how the SPAC market has evolved since the speculative boom of 2020 and 2021.
Today’s de-SPAC environment operates under significantly tighter regulatory scrutiny, including enhanced disclosure requirements, greater SEC oversight, and stricter treatment of projections and liability standards.
The Harvard Law School Forum on Corporate Governance noted that redemption rates spiked in 2022, in some cases approaching 100%, contributing to a significant slowdown of the SPAC activity.
In response to rising investor concerns and regulatory pressure, the U.S. Securities and Exchange Commission adopted enhanced SPAC disclosure and liability rules in 2024 designed to align de-SPAC transactions more closely with traditional IPO standards. Sponsors also faced greater pressure to demonstrate financing certainty, stronger disclosures, and more credible post-merger execution.
Enhanced Games completed its transaction within this more disciplined environment.
Its Form S-4 included audited financial statements, governance disclosures, transaction details, and extensive risk-factor analysis subject to SEC review. The company also supplemented SPAC trust proceeds with a separately arranged US$40 million PIPE financing commitment designed to strengthen liquidity and improve deal certainty.
That structure reflects a more institutional and disciplined SPAC market than the speculative wave seen several years ago.
The Enhanced Games transaction demonstrates that, despite tighter regulation and a far more selective market environment, SPACs can offer certain growth companies a practical alternative to the traditional IPO.
For businesses prioritising speed, capital access, and execution certainty, a well-structured de-SPAC transaction may provide a more efficient route to the public markets, particularly when supported by credible financing, disciplined structuring, and strong investor backing.
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An interview with Tengin founder Madhu on turning coconuts into a business built around farmers, villages and communities.
Updated
June 1, 2026 1:46 PM
Workers of Tengin. PHOTO: TENGIN
In Southern India, coconuts are part of daily life. They are used in food, rituals, farming and home remedies. For Tengin, a social startup whose name means “coconut” in Kannada—a South Indian language—the crop also offers a way to build a rural business with deeper local impact.
Founded by Madhu Kargunda in 2017, Tengin works with farmers, artisans and women’s collectives in Karnataka to make products from almost every part of the coconut. Its range includes virgin coconut oil, desiccated coconut powder, shell-based handicrafts, candles, home décor items and other coconut-based goods.
The larger idea is simple. Farmers should play a bigger role in the value created from the crops they grow. Tengin is trying to help rural communities move beyond supplying raw produce and take part in processing, branding, packaging and sales.
Madhu grew up in an agricultural family. Over the years, he saw many young people move away from farming to look for stable jobs in cities. To him, the problem was not farming itself. The bigger issue was that farmers often missed out on the value created after crops left the farm.
A coconut might be grown in a village, but much of the income comes later through processing, branding and retail. That gap stayed with him, eventually leading him to leave his eight-year career in IT and return to agriculture full-time.
Started with just making virgin coconut oil, Tengin has grown into a wider coconut products business. The startup is now working with around 15 to 20 farmers and artisan groups across Karnataka. It is also building production capacity for larger retail and B2B partnerships.
Today, Tengin generates annual revenue of roughly ₹50-60 lakh, or around US$52,000 to US$62,000. It has also started testing international demand, including a recent export of around 200 kilograms of desiccated coconut powder to Texas.
As Tengin expanded, the team began looking more closely at parts of the coconut that were usually treated as waste or low-value byproducts, such as coconut shells and coir. At first, Tengin treated them that way too.
“When we started, we used to burn some of the shells”, Madhu said. “Later, we realized it was an economic opportunity”.
That changed the company’s product strategy. Local artisans working with Tengin now are turning coconut shells into bowls, incense holders, candles, coffee mugs, mobile stands and handcrafted décor items.
This gives Tengin a place in the circular economy, where waste materials are reused instead of thrown away. For Madhu, though, sustainability has to do more than reduce waste. It should also create income in the community.
“We wanted to minimize waste and maximize wealth locally”, he said.
Tengin does not depend only on one central factory. Instead, it works with smaller village-level production groups that connect to a larger business network. This helps farmers stay close to their land while also taking part in processing and manufacturing. It also creates local jobs, which can reduce the pressure to migrate to cities.
Yet, the model is not always easy. In the early days, Tengin had to convince some farmers to move from chemical farming to natural farming. Moreover, the weather has also become harder to predict. Irregular rainfall and changing harvest cycles can affect coconut prices and production consistency.
Still, Madhu sees the village-based model as central to Tengin’s identity. For him, villages are living systems built on shared work, local knowledge and interdependence.
“The definition of a village is inclusiveness”, he said.
That belief also shaped Tengin’s “coco tourism” initiative. Through the program, visitors meet farmers, learn about farming practices and see how coconut products are made.
During one visit by MBA students from Indiana State University, an unexpected spell of rain gave the group a closer look at village life. Farmers gathered and began singing traditional folk songs to express gratitude to nature. For the students, it became a lesson in culture as much as business.
Madhu sees these moments as part of what rural entrepreneurship can protect.
“If villages become empty, we lose language, traditions and local knowledge too”, he said.
Tengin’s model is not difficult to copy on paper. Madhu is open about that.
“Anyone can do it”, he said, “but what matters is how you work with people”.
For him, the harder part is building long-term trust with farming communities. Tengin works through relationships more than rigid contracts. This encourages farmers and local groups to participate in the system in a more collaborative way.
That trust has become one of the startup’s strongest assets. It shapes how Tengin works with producers and how it presents its products to customers.
For Madhu, it is not enough to call a product sustainable. Customers should be able to understand where it came from, who made it and how their purchase supports the people behind it.
That matters even more in a market where terms like “eco-friendly” and “organic” have become buzzwords. Madhu knows that these words can feel empty when brands do not show what they actually mean.
“Anyone can use these words today,” he said. “What matters is whether consumers can actually see what you are doing”.
This is why Tengin focuses on transparency and storytelling. The startup wants customers to see the full journey of each coconut product, from the farm to the finished item. It also wants them to understand whose livelihood is connected to that journey.
Madhu also believes small brands cannot depend on products alone. Products can be copied, but a clear story, a trusted community and a visible impact are harder to replicate.
“Don’t try to sell only the product,” he said. “When you try to sell the product, you are being sold once”.
Each Tengin product includes details about the people behind it and how profits are shared. In that way, the company connects its coconut products to the farmers, artisans and village systems that make them possible.
For Madhu, entrepreneurship starts with the problem. Founders, he believes, should understand the problem deeply before thinking about scale and revenue.
“An entrepreneur is someone trying to solve an existing problem”, he said. “Sometimes it may be a small problem, sometimes a niche one. It could be in technology, energy, farming or any other sector—but first understand what problem you are trying to solve”.
Farming has also taught him patience. He gives the example of coffee.
“When you plant coffee, you know it may take five years before you see results”, he said, “but you still [have to] water it every day”.
He sees entrepreneurship the same way. Building systems, communities and trust takes time. Growth may be slow at first, but daily work matters.
Adaptability is another lesson he returns to often. Farming conditions change constantly, and so do markets. In both cases, people have to keep learning, unlearning and adjusting.
“Entrepreneurship is about constantly learning new things because the world is changing all the time”, he said. “You need to stay relevant, understand what connects with [your customers] and adapt accordingly”.
Looking ahead, Tengin plans to grow its farmer network, strengthen production capacity and expand its export business. Madhu is also looking to collaborate with more platforms, storytellers and communities that can help amplify the voices behind the products.
The startup is also involved in rural community initiatives, including support for government schools and menstrual health awareness programs.
For Madhu, giving back is part of how he defines success. With more resources, he would invest further in farmer education, village-level production systems and community development.
By building a business around coconuts, Tengin is also making a larger case for rural entrepreneurship. Its work shows that a modern consumer brand can grow without losing its connection to the farmers, traditions and village ecosystems that make that growth possible. For Madhu, that is the real measure of progress: creating value that stays rooted in the community.