India's IPO Boom: Startups and Small Businesses Go Public in Record Numbers

India's capital markets have witnessed an unprecedented surge in initial public offerings (IPOs), with startups and even small businesses seizing the opportunity to go public. This trend, fueled by strong investor confidence, favorable regulatory changes, and a thriving entrepreneurial ecosystem, has positioned India as a global leader in IPO activity.

After a brief slowdown, the market has bounced back, driven by improved investor sentiment and favorable economic conditions.

Several high-profile startups, including Zepto, Pine Labs, Lenskart, Groww, and PhonePe, are preparing for IPOs, while others like Urban Company and PhysicsWallah have already filed their draft papers with SEBI. The renewed momentum is partly due to easing global geopolitical tensions and a more stable domestic market, encouraging companies to accelerate their listing plans.

In May alone, six companies—including Schloss Bangalore, Borana Weaves, and Belrise Industries—are set to raise over ₹11,000 crore (approx 1.28 billion USD) through IPOs. This follows a record-breaking 2024, where 12 startups went public, raising billions and solidifying India's position as a hub for innovation.

The Numbers Behind the Boom

The digital economy has played a crucial role in this boom, with fintech and retail startups leveraging India's robust digital infrastructure to attract investors.

Additionally, SME IPOs have seen substantial growth, with 215 companies raising ₹7,700 crore or approximately US $9 billion so far.

With over 80 companies at various stages of IPO approval, the trend is expected to continue, making 2025 a landmark year for India's startup ecosystem. If market conditions remain stable, more new-age firms could go public, further strengthening India's position in the global IPO landscape

In 2024, 12 startups went public, raising billions and cementing India's reputation as a hub for innovation. Venture capitalists (VCs) reaped massive returns, earning over $4 billion through IPO exits—double the amount earned in 2023.

India's venture capital market rebounded, with investments soaring to $13.7 billion in 2024, marking a 1.4x increase from the previous year. Deal volume surged by 45%, with 1,270 deals recorded, up from 880 in 2023.

Key Players and Sectors

Among the standout IPOs, Swiggy's $1.35 billion listing was one of the largest globally, reflecting growing investor appetite for profitable, tech-driven businesses. Other major players preparing to go public in 2025 include Zetwerk, Meesho, Bluestone, Urban Company, Zepto, Groww, and Pine Labs.

The consumer technology sector led the charge, with funding surging 2.3x to $5.4 billion, driven by quick commerce, gaming, edtech, and travel tech. Meanwhile, software and SaaS investments grew 1.2x to $1.7 billion, fueled by strong demand for AI-driven solutions and enterprise technology.

India's IPO boom is being driven by a mix of established giants and emerging startups across diverse sectors. Here’s a breakdown:

Key Players

• Zepto, Flipkart, Pine Labs, Lenskart, Groww, PhonePe – Leading the charge in fintech, e-commerce, and retail.
• Indira IVF, HDFC Credila – Expanding healthcare and financial services.
• Urban Company, PhysicsWallah – Innovators in edtech and gig economy services.
• Hyundai Motors India – One of the largest IPOs in recent years, reflecting India's growing auto-tech sector.

Dominant Sectors

• Financial Services & Fintech – Continues to be a stronghold, with digital lending and payment platforms attracting investors.
• Quick Commerce & Retail – Companies leveraging dark stores and cloud kitchens are gaining traction.
• Electric Vehicles & Auto-Tech – A rising sector, with Hyundai’s IPO signaling strong investor interest.
• Healthcare & Biotech – Indira IVF’s IPO highlights the growing demand for specialized healthcare services.
• IT & AI-driven Startups – AI-powered solutions and SaaS companies are seeing increased IPO activity.

The Road Ahead

India's IPO boom is far from over. With at least 25 startups gearing up for public listings in 2025, the momentum is expected to continue. Regulatory reforms, increased domestic liquidity, and a thriving startup ecosystem have created a fertile ground for businesses to scale and attract global investors.

As India cements its position as a powerhouse in IPO activity, the coming years promise even greater opportunities for entrepreneurs and investors alike. Whether it's tech giants or small businesses, the public markets are proving to be a game-changer for India's economic landscape.