The Rise of Indian Startups and Their IPO Journey

For years, Inc42 has monitored the Indian tech startup ecosystem, keenly observing its growth from infancy to maturity. A clear indicator of this evolution is the increasing number of startups eyeing public listings. This transition signifies not just operational advancement but also symbols of transparency and long-term viability.

The Significance of Public Listings

Traditionally, for Indian companies, a public listing has been synonymous with establishing operational maturity and building investor confidence. For startups, however, this is a relatively new but essential rite of passage. Entering the public markets creates viable pathways for investor exits and wealth creation, marking the companies’ transition into adulthood.

Currently, around 15 startups—including notable names like PhysicsWallah, Groww, and Lenskart—are navigating various phases of their Initial Public Offerings (IPOs). More than 40 new-age tech firms are already listed, demonstrating a clear momentum in this market. Startup listings from the likes of Swiggy and Ather Energy had made headlines when they debuted on the exchanges in 2024. It’s worth noting that other international Indian companies like MakeMyTrip and Freshworks are already listed on the Nasdaq in the United States.

Trends in IPOs

2024 was a pivotal year for the Indian startup IPO landscape, witnessing 13 companies take the public plunge amid a buoyant market. The pace continues into 2025, with nine startups—including BlueStone and Urban Company—having gone public through October. This momentum is anticipated to grow in the final quarter of 2025, with many more tech companies poised to approach Dalal Street, thanks to approvals from the Securities and Exchange Board of India (SEBI).

As of now, the total market capitalization for the listed companies exceeds $121 billion, providing a robust foundation for future growth. Recognizing the importance of tracking these developments, Inc42 has launched the Indian Listed New-Age Tech Company Tracker, serving as a comprehensive resource for investors and stakeholders to monitor share price movements and financial performance.

The Shift Towards Profitability

Historically, Indian startups were often characterized as "loss-making," a trend that peaked between 2020 and 2022 when rapid growth was prioritized over profitability. However, the shift to funding scrutiny in 2022 prompted startups to reassess their strategies, pushing for financial viability ahead of IPO applications.

Data reveals that about 58% of listed new-age tech companies are currently profitable. Companies like Info Edge have led the profitability race, with a reported net profit of INR 962 crore for FY25. Other notable performers include Justdial and IndiaMart, raking in profits of INR 584 crore and INR 551 crore, respectively.

Conversely, several recently listed startups face financial hurdles; Swiggy alone reported the highest net loss at INR 3,117 crore for FY25. This scenario underscores a crucial trend in the market: investors are favoring profitable entities. Profitable companies have seen a median stock price increase of 31% since their debut, while loss-making ventures have witnessed a decline of 42%.

Sectors Driving the IPO Surge

The sectors responsible for the wave of IPOs correspond to the funding patterns in the Indian startup environment. In 2024, startups received approximately $12 billion in funding, with fintech firms leading the charge by securing over $2.5 billion. Following closely are enterprise tech and consumer services, both pulling in nearly $1.8 billion.

So far, fintech and eCommerce have accounted for the highest number of public listings. This trend is projected to endure as prominent names like Groww and PhonePe prepare for their market entries. Additionally, other sectors, particularly real estate tech, are poised to see increases in public listings as Infra.Market has confidentially filed for an IPO.

Geographical Landscape of Startups

While Bengaluru traditionally holds the title of India’s startup capital, an interesting trend has emerged: the Delhi NCR region now boasts the highest concentration of listed new-age tech companies. With 19 listed firms, this area surpasses Mumbai and Bengaluru, each contributing eight. The Gurugram area alone is home to nine listed companies, including heavyweights like Eternal and Delhivery, indicating a bustling startup hub.

This trend suggests potential future shifts as startups from different locations, including PhysicsWallah and Urban Company, aim to enter public markets. Moreover, the cumulative market cap for new-age tech companies in the Delhi NCR region stands at a staggering $92 billion out of the total $121 billion.

---

With these developments in mind, the story of Indian startups continues to unfold, illustrating a vibrant and competitive space in the global market. The emphasis on profitability, sectoral evolution, and geographical shifts all point toward a promising future for India’s tech entrepreneurs in the public domain.