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Following last year’s startup IPO frenzy, with 13 firms going public, the number of new-age public listings is expected to nearly double in 2025.
IPOs in 2025
After a series of successful public listings in 2024, the startup initial public offering (IPO) party is set to carry over into the new year, buoyed by healthy public market activity and the strong performance of already-listed startups.
At least 25 new-age companies are expected to go public in 2025, according to a list compiled by Moneycontrol, a significant increase from 13 in 2024. Should all these listings materialise, it would mark the highest number of startup IPOs in a single calendar year, setting a new record.
New-age companies like Ather Energy, ArisInfra, Avanse, Aye Finance, BoAt, Bluestone, Cardekho, Captain Fresh, DevX, Ecom Express and Fractal are likely to IPO in 2025. Infra.market, Innoviti, InCred, Indiqube, Ofbusiness, PhysicsWallah, PayU, Pine Labs, Ullu Digital, Shadowfax, Smartworks, Zappfresh, Zepto and Zetwerk are the others that are also likely to join the list.
“We will probably see another 10-20 companies, or even more, go public from the startup ecosystem (in 2025),” Sandeep Singhal, co-founder and Managing Partner, WestBridge Capital, told Moneycontrol in an interview.
“This will be the year of maturity. Today, there are maybe 15 venture-backed companies that are public. But when that number triples, and these companies start to show credible financials quarter-on-quarter, the whole ecosystem will get strengthened,” he added.
Last year, 13 startup IPOs collectively raised over over Rs 29,000 crore ($3.4 billion, with bumper listings from Swiggy, Ola Electric, and FirstCry. In 2025, the total fundraise amount is likely to increase further as more companies line up to tap the public markets.
This marks a notable recovery from the subdued years of 2022 and 2023, when just two and five startups, respectively, made their stock market debuts. As many as 10 of these newly-listed venture-backed IPOs have since been trading over their issue price, as realistic valuations have attracted retail investors, data showed.
The biggest draws
The largest IPOs of 2025 are expected to come from startups such as contract manufacturer Zetwerk, SoftBank-backed OfBusiness, and fintech unicorn Pine Labs, each looking to raise $1 billion. Quick commerce leader Zepto, construction materials platform Infra.market, AI unicorn Fractal, and edtech startup PhysicsWallah are also among the major IPOs expected, with each targeting around $500 million.
The fintech sector is set to dominate the IPO landscape, with as many as six companies set to go public. Aye Finance and Avanse Financial Services have already filed their IPO papers, while PayU, Pine Labs, and InCred are expected to list later in the year.
Investors suggest that IPO-bound companies that demonstrate strong financial performance – including profitability, strong governance, and market leadership – will have a distinct advantage in generating investor interest.
“The path to an IPO has become more deterministic for startups, with a clear list of dos and don’ts for all to follow. Controlled burn, improving margins, greater operating cashflows, seasoned team members, disciplined forecasting and budgeting are hygiene factors for any startup looking to IPO,” said Siddarth Pai, Founding Partner, 3one4 Capital, an early-stage venture capital firm.
While companies like Infra.market, Aye Finance, Fractal, and OfBusiness, have reported strong financials recently, firms including Ather Energy, and ArisInfra – which have witnessed flat growth and mounting losses – may have to do more before going ahead with their listing plans so they can be rewarded by public market investors.
Other notable names headed for stock market debuts include logistics firms Ecom Express and Shadowfax, apart from brands like Bluestone, BoAt, and CarDekho.
Given the success of smaller-scale IPOs in 2024, like that of Unicommerce, Mobikwik, and Awfis, and impressive small and medium enterprise (SME) listings from TAC Security and Menhood, companies headed for modest IPOs – such as Zappfresh, and Smartworks – may also find themselves doing well.
Rise of pre-IPO rounds
As startups head towards the public markets, pre-IPO funding and secondary transactions, which drove a big chunk of the funding growth in 2024, are set to rise in parallel. Several IPO-bound firms, including Zepto, PhysicsWallah, Rebel Foods, and Oyo, among others, raised large rounds last year.
Pre-IPO rounds are typically priced at a discount compared to the IPO price, enabling investors to buy shares at a more favourable valuation, allowing for greater gains. Over the past year, these rounds have unlocked newer pools of capital for startups in the form of HNIs and family offices, say bankers.
“Pre-IPO activity is likely to rise (in 2025), serving not just as a valuation benchmark but as a strategic opportunity for investors to pare stakes and optimize IPO size,” said said Gaurav Sood, Managing Director and Head – Equity Capital Markets, Avendus Capital.
“These rounds are attracting new capital pools, with HNIs and family offices actively taking concentrated positions due to strong alpha generation, enhancing cap tables and reducing post-listing stock overhang,” he added.
For instance, fintech startup Aye Finance has raised Rs 110 crore debt from Northern Arc, and ASK Financial, and is nearing another debt deal over Rs 200 crore with Goldman Sachs (India) Finance.
Pick-up in funding
After strong public market activity buoyed funding activity among startups last year, funding is set to surpass the levels of 2024, as macroeconomic headwinds subside. Companies, whether IPO-bound or at an early stage, exhibiting improved financial performance will be able to raise funds, say investors.
Industry watchers are of the view that India’s long-term macroeconomic stability will be a driving force behind venture capital and private equity investments in startups.
“For patient capital, India offers a rare combination of systemic growth and a policy environment designed to amplify entrepreneurial activity, making it an essential locus for long-term investment strategies,” said David Wilton, Chief Investment Officer (CIO) at homegrown investment firm Oister Global.
Regardless, for new-age companies to keep up the current momentum, the key will be to concentrate on “building sustainable businesses while reducing the dependency on external capital,” said Pai.
