India's IPO Market – India's Startup IPO Boom: What 2025 Holds for the Market

The Indian IPO scene witnessed a big change in 2024 when new-age technology startups became the new stars in town. With a total of 13 startup IPOs, which have raised more than INR 29,000 Cr ($3.4 Bn), 2024 has really set the bar even higher for the big leap in 2025. The new year has barely started and over 25 startups may soon make their entry into the public markets with hopes to raise around INR 55,000 Cr ($6.4 Bn). Let's dive deeper into the India startup IPO ecosystem to see what's in store this year.

Startups Gearing Up for IPOs in 2025

Among the companies that are planning to list in 2025, several firms have already filed their Draft Red Herring Prospectuses (DRHPs), including:

• Ather Energy
• ArisInfra Solutions
• Avanse Financial Services
• Aye Finance
• Bluestone Jewellery
• DevX Accelerator
• Ecom Express
• Smartworks Coworking Spaces
• Ullu Digital
• Zappfresh (DSM Fresh Foods)

In addition, prominent startups expected to file their DRHPs soon include:

• BoAt
• CarDekho
• Captain Fresh
• Fractal Analytics
• InfraMarket
• Innoviti
• Incred Financial Services
• IndiQube Spaces
• Ofbusiness
• PhysicsWallah
• PayU
• Pine Labs
• Shadowfax 
• Zepto
• Zetwerk

2024's Impact on the 2025 IPO Landscape

It led to an optimistic start to 2025 as a robust IPO pipeline kept investors' optimism alive in 2024. Indian stocks will continue to infuse investor confidence, despite all the macro challenges. Domain experts feel that international investment interest is gathering speed, while domestic inflows remain strong.

General Elections Effect: In general elections 2024, a general election kept the IPOs strictly on time; there were barely five startups issuing IPOs before the elections in comparison to more than half deciding on post-election stability.

Performance of Q3 at All Time High: With 27 deals in Q3 2024, that also translates to 29% YOY uptick with issuances amounting to $4.27 Bn (INR 35,000 Cr).

Top Winners: Swiggy, Bajaj Housing Finance, Ola Electric, and FirstCry grabbed the headlines for Hyundai Motor India making India's largest-ever IPO in 2025.

Key Factors Behind the Surge in IPOs in 2025

Diversification

Even as Tech Startups Remain Dominant in the IPO Markets, 2025 is packed with tech-enabling companies

Bluestone Jewellery; D2C brand with online-offline models

PhysicsWallah; India's first ed-tech company to go public, derives 40 % of its revenues through offline centers.

Coworking Spaces: Smartworks, IndiQube, and DevX are using technology to transform the traditional coworking model.

Coworking IPO Boom

So far in 2024, it has been the year of the IPO of a successful Awfis, bringing onboard the coworking space providers. The themes that are going to drive the trends include:

• The demand for flexible workspaces is increasing.
• The boom in India's commercial real estate.
• Companies focus on advanced technology, sustainability, and premium amenities.

Strong Market Sentiments

The sector leaders believe the public market trend will continue on a positive streak.

Anuj Bhargava, MD at Lightspeed India said, "Domestic institutions strength in holding the market."

Ishaan Mittal, managing partner at Peak XV Partners cited consumer internet, fintech, and payments as three areas of still untapped potential.

Challenges and Considerations

Market Volatility

There are still uncertainties in the form of GDP fluctuations, which will periodically influence the market. Startups must be prepared to adjust their IPO strategies for this.

Valuation and Differentiation

Public market investors need to differentiate pure-play technology companies from technology-enabled businesses. That will change valuations and growth estimates by a lot.

Crowded Coworking Space Market

It will make the coworking space overcrowded. Only scalable, geographically diversified business models with differentiated value propositions can gain a significant competitive advantage.

Pre-IPO Rounds Matter More

The concept of pre-IPO rounds is changing. Investments are happening two years before the IPO. These rounds set benchmarks for IPO valuations and provide partial liquidity opportunities to VCs. Family offices and HNIs have become extremely active in this space.

Some expected IPOs are going to capture the headlines throughout the year, including:

IPOs of High-Profile Companies to Watch Out for in 2025

• Flipkart: The e-commerce giant is said to be going public.
• PhysicsWallah: Iconic deal for the Indian edtech space
• Ather Energy and Zepto are sector leaders
• HDFC Credila and LG India form Heavyweight Heavyweight Well-spread IPO mix

VCs and PEs are eyeing profitable exits

With the tech startup IPO boom, VCs and PEs want to secure profitable exits. Some of the biggest private investors set to offload stakes in pre-IPO rounds and IPOs include Lightspeed, Peak XV, Accel, and SoftBank. This is on a partial liquidation basis to avoid an overhang on stocks while keeping the options open for the future.

The Road Ahead

The Indian IPO market is to go above $20 Bn in 2025, increasing from $16 Bn in 2024. A thrilling combination of known names and new players this year will present a number of opportunities for investors to share the story of Indian startup growth.