India’s tech startup ecosystem is witnessing a renewed wave of IPOs, with more than 36 companies preparing to go public by 2027. These startups, spanning e-commerce, fintech, and mobility, collectively boast a valuation of $100 billion. Industry experts, including Rainmaker Group’s managing partner Kashyap Chanchani, believe these IPOs will mark a significant turnaround in India’s stock market activity, which had recently seen a decline.

Major Startups Heading for IPOs

Some of India’s biggest tech names gearing up for IPOs include:

• Flipkart – Walmart-backed e-commerce giant.

• PhonePe – Leading digital payments firm.

• Oyo Hotels & Homes – Budget lodging provider.

• Meesho – Social commerce startup.

• Lenskart – Online eyewear retailer.

• CARS24 – Used-car resale platform.

• Urban Company – Home services marketplace.

The Changing Landscape of Startup Valuations

Unlike the overhyped IPO wave of 2021-2022, where high valuations led to post-listing crashes (e.g., Paytm’s 63% drop and Nykaa’s 4% decline), the upcoming IPOs are expected to be more balanced. According to Rainmaker’s report, two-thirds of these startups are already profitable, ensuring better transparency and investor confidence.

Challenges in the Indian IPO Market

Despite this optimism, India’s IPO market faces hurdles:

• Stock Market Slowdown – The NSE Nifty 50 Index faced a downturn amid economic concerns.

• IPO Proceeds Decline – First-quarter IPO funding in 2024 dropped by 34%, falling behind Hong Kong and Japan.

• Investor Sentiment Shift – Retail investors are now wary of overvalued tech IPOs, pushing firms to reassess their pricing strategies.

Big Investors Looking for Exits

SoftBank Vision Fund and Prosus NV, which have stakes in Oyo, Lenskart, and Meesho, are keen to exit through IPOs. As global venture capitalists face funding pressures, these IPOs will provide a much-needed liquidity event.

Upcoming High-Profile IPOs

Some of the biggest IPOs expected soon include:

• LG Electronics India – A potential $1.7 billion IPO.

• Ather Energy – Electric scooter maker eyeing a $400 million public listing.

India’s Place in the Global Startup Market

India remains the third-largest startup economy after the US and China. However, issues like corporate governance failures, mass layoffs, and failed business models have impacted investor confidence. The case of Byju’s, once a top edtech firm, serves as a cautionary tale of how investor trust can evaporate.

Final Thoughts: What Lies Ahead?

For India’s next wave of IPOs to succeed, startups must ensure:

• Realistic valuations to attract retail and institutional investors.

• Stronger corporate governance to avoid past failures.

• Profitability and transparency to sustain long-term growth.

With major listings on the horizon, India’s tech sector is set for a stock market resurgence, bringing opportunities for investors and boosting the country’s digital economy.

The Current active IPO are Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited.

The Closed IPOs are  Identixweb Limited.

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