Momentum Builds After Strong 2025 Listings
The renewed IPO rush follows a robust performance by new-age companies that listed in 2025. Collectively, startups raised close to ₹36,000 crore last year, providing liquidity to founders, early investors and employees.
High-profile listings included Ather Energy, Urban Company, Lenskart, Meesho, Groww, PhysicsWallah and Pine Labs, making 2025 one of the most active years for tech listings in India.
Investors Turn More Selective
Bankers and venture investors caution that while interest remains strong, sustaining momentum in 2026 will depend on broader market conditions and investor appetite for technology businesses that are still evolving financially.
Public market investors are increasingly focused on profitability, cash flow visibility and post-listing performance, rather than growth narratives alone.
Profitability Now a Key Filter
According to investment bankers, the post-listing performance of new-age companies in recent years has helped change perceptions. Improved earnings visibility and balanced IPO pricing have strengthened confidence among institutional investors.
Multiple cohorts of companies listed since 2021 have demonstrated steady financial performance, suggesting that India’s startup sector is entering a more mature phase.
Macro Factors to Shape IPO Timing
Market participants expect IPO activity to pick up after the Union Budget, with March emerging as a potential inflection point. However, sentiment will be influenced by global and domestic macroeconomic cues.
Factors such as oil price movements, progress on a possible India–US trade deal and targeted policy measures could play a crucial role in determining investor risk appetite.
Big Names Preparing to Go Public
Quick commerce platform Zepto has already made a confidential filing, aiming to raise up to ₹11,000 crore in fresh capital. The company is expected to list in the September quarter as competition intensifies in the instant delivery space.
Hospitality major Oyo has also filed confidentially for its third IPO attempt, seeking to raise ₹6,650 crore. The company turned profitable in FY24 and has maintained positive earnings momentum.
Walmart-owned PhonePe, one of India’s largest digital payments platforms, is targeting an IPO size of around ₹13,000–14,000 crore.
Large IPOs May Absorb Liquidity
Market experts note that the timing of mega listings, including potential public offerings from large conglomerates, could influence capital flows into smaller IPOs.
Investors are expected to adopt a bottom-up approach, focusing on governance quality, durable growth models and realistic valuation expectations.
Value Unlocking for Founders and Investors
The IPO wave has significantly boosted exit opportunities for venture capital firms. In 2025, over half of IPO proceeds came from offers for sale, enabling funds and early backers to partially monetise their holdings.
Employee stock option plans also saw substantial liquidity, with ESOP pools worth nearly ₹8,700 crore becoming tradeable following public listings.
2026 Outlook
Bankers believe appetite for new-age companies remains strong but more disciplined. The focus has clearly shifted from total addressable market projections to a demonstrable path to profitability.
With deeper participation from domestic institutions, insurers and pension funds, India’s IPO market appears open, though increasingly selective.
