Uday Kotak on Wednesday warned the start-up community that the “Cinderalla times” of easy money will not last as they will have to contend with the prospect of rising interest rates.

His caution comes at a time firms are queuing up to tap the capital markets in droves. Investor response to most of these issues was strong as liquidity was available with central banks being in an accommodative mode.

However, the commentary has changed in recent times with the US Federal Reserve indicating an hawkish stance because of rising inflation.

Delivering the theme address at an event organised by Institutional Investor Advisory Services (IiAS), the MD & CEO of Kotak Mahindra Bank said startups should conduct a thorough health-check up before going public.

“Last two years, many investors assumed near zero interest rates or may be 1-1.5 per cent long term rates was something which will remain forever…I think the cost of money has begun to go up... The price of money is one of the most important aspects in pricing equities...Cinderalla times will not last forever. I think we are not very far away from the clock striking midnight,’’ he said.