India’s Startup IPO Landscape in 2025
The Indian startup ecosystem witnessed robust IPO activity in 2024, with 13 new-age tech companies listing on the stock exchanges and cumulatively raising INR 29,070 Cr. Notable listings included sector giants Swiggy and FirstCry, as well as SME maverick TAC Infosec. Early backers of these companies saw significant returns, with some VCs and PEs achieving gains of over 30X.
Several factors contributed to the favorable IPO climate at the start of 2025, including India’s strong position in the equities market, rationalized valuations sought by startups in 2024, and renewed focus on profitability and sustainable growth. Industry watchers expected this momentum to continue into 2025.
Challenges in 2025
However, the picture-perfect story of startup IPO mania began to unravel barely months into 2025. Despite 23 startups being in various stages of IPO preparations at the start of the year, most decided to slow down their public listing plans. Only one new-age tech company, Ather Energy, got listed on the exchanges in May 2025, with a muted debut.
Unseen forces played a spoilsport in India’s startup IPO frenzy. The Indian equities markets corrected in the first few months of 2025 due to geopolitical tensions, high valuations, tariff wars, and macroeconomic factors like recession and inflation fears.
Key Takeaways
- India’s strong equities market and rationalized valuations were key factors driving IPO activity.
- New-age tech companies faced challenges in 2025, including market correction and fundamental issues.
- Investors now focus on profitable and sustainable ventures with strong scalability and technology integration.
- Experts expect new-age tech IPOs to pick up pace in the second half of 2025.
Notable IPOs and Upcoming Listings
Several startups have filed or are preparing to file their DRHP with SEBI. Some notable names include:
- Ather Energy: Listed in May 2025 with a muted debut.
- ArisInfra: Filed DRHP for a nearly INR 500 Cr IPO.
- Avanse Financial Services: Refiled DRHP for an INR 3,500 Cr IPO.
- Groww: Filed DRHP via confidential pre-filing route for a $1 Bn IPO.
- Physics Wallah: Filed DRHP for an INR 4,600 Cr IPO.
Conclusion
While the startup IPO landscape in India faced challenges in 2025, experts remain optimistic about the second half of the year. Startups that focus on profitability, sustainability, and differentiation are likely to attract investor interest and succeed in their public listing endeavors.
