Financial Health Assessment of Indian Startup-Origin ECommerce Firms Using Altman Z-Score: Evidence from 20192024

Abstract

India has experienced the emergence and growth of various start-up-origin e-commerce firms operating across diverse digital platform segments. These firms have been showing high growth rates, huge investor interests and large market expansions but still, the conservative approach of understanding their financial health and long term survival stays relevant. The present study examines the financial health of selected Indian start-up-origin ecommerce companies using the modified Altman Z-Score model during the period 2019–2024. The findings reveal significant variations in financial health among the selected firms and indicate that market-value-related variables strongly influence Altman Z-Scores in digital platform businesses. The study further suggests that although the Altman Z-Score model remains useful for assessing financial health, its interpretation in start-uporigin digital firms should be made carefully due to the strong impact of market valuation and growth-oriented business structures.