India's startup ecosystem achieved a significant milestone in 2025, with a wave of initial public offerings that demonstrated the maturity and investor appeal of the country's emerging companies. The year witnessed an unprecedented surge in startup IPOs, marking a defining moment for India's entrepreneurial landscape.

Record-Breaking IPO Activity

The startup IPO market in 2025 delivered impressive results, with key metrics highlighting the sector's robust performance:

Notable Public Listings

Several prominent startups successfully transitioned from private to public markets during 2025. The companies that made their market debut include:

• Lenskart: The eyewear retailer and technology platform
• Groww: The investment and trading platform
• Meesho: The social commerce marketplace
• PhysicsWallah: The education technology platform

These companies represent diverse sectors within India's startup ecosystem, from e-commerce and fintech to edtech, demonstrating the broad-based nature of the IPO surge.

Future Market Outlook

Investment firm Lightspeed has expressed optimism about the continued momentum in India's startup IPO market. According to their assessment, the current boom represents just the beginning of a larger trend, with startup investment strategies and public market preparations extending into 2026.

The sustained investor interest and successful public market debuts suggest that India's startup ecosystem has reached a level of maturity where companies can successfully transition to public markets while maintaining growth trajectories.

Market Significance

The ₹41,000 crore capital raise through startup IPOs in 2025 represents a substantial injection of public market capital into India's emerging company sector. This figure underscores the growing confidence of retail and institutional investors in Indian startups' business models and growth potential.

The successful public listings across multiple sectors indicate that India's startup ecosystem has developed the depth and diversity necessary to support sustained public market activity, setting the stage for continued growth in the coming years.

Source: https://www.cnbctv18.com/business/startup/india-startup-ipos-ai-quick-commerce-lightspeed-view-ws-l-19826851.htm

India's initial public offering market is set for a significant expansion in 2026, with potential offerings worth $25-30 billion, according to Gaurav Sood, Managing Director and Head of Equity Capital Markets at Avendus Capital. This projection represents a substantial increase from the current market activity, which has maintained approximately $20 billion worth of listings in each of the past two years.

Market Growth Drivers

The anticipated growth is underpinned by a strong and diversified pipeline of companies across multiple sectors. Sood emphasized that the market's positioning reflects both depth and breadth in the types of companies preparing for public listings.

Sector-Wise Opportunities

New-age companies, particularly in fintech and consumer tech, are expected to continue dominating IPO activity by sector. These technology-led listings represent the core of the market momentum, reflecting India's digital transformation and the maturation of its startup ecosystem.

Beyond technology, several other sectors are emerging as attractive candidates for public markets:

• Renewables and Energy: Growing interest in clean energy companies
• REITs and InvITs: Continued relevance as investment vehicles
• Financial Services: Select firms showing strong fundamentals
• Healthcare: Both multi-specialty and single-specialty companies gaining traction

Multinational Listings Trend

A key structural theme shaping the IPO landscape is the increasing number of multinational companies choosing to list their India businesses separately. Sood characterized this as a "multidecadal theme" rather than a short-term trend, highlighting India's rising importance for global corporations as both a growth and profit center.

This development reflects the strategic value that international companies place on their Indian operations, with many viewing separate listings as a way to unlock value and provide focused exposure to India's growth story.

Investor Participation Outlook

Regarding investor participation, Sood expects foreign institutional investor selling to moderate somewhat in 2026. Notably, he pointed out a distinction between primary and secondary markets, with primary markets continuing to attract strong FII interest, particularly in large, high-quality IPOs.

This sustained FII participation in primary markets reinforces confidence in India's long-term growth story and suggests that international investors remain committed to participating in new opportunities despite any secondary market volatility.

The projected growth in India's IPO market reflects broader economic confidence and the maturation of various sectors that are now ready for public market participation. The combination of domestic growth stories and international companies recognizing India's strategic importance creates a robust foundation for the anticipated market expansion in 2026.