Indian start-ups are experiencing a phenomenal boom-time of IPOs this year. This trend represents a notable return to prioritization – a retreat from rapid scale at all costs. In early November 2023, 43 of these start-up IPOs have made their debut. This is a five times increase over the net number of public offerings seen in 2020. This trend is a 2x increase from 2022 and is indicative of the rapidly changing nature of Indian entrepreneurship.
Neha Singh, co-founder of market intelligence firm Tracxn, notes that many founders are now prioritizing sustainability, profitability, and disciplined capital use over rapid expansion. That mindset shift is most evident in the fervent demand for IPOs. Moodys investors of all types are getting involved, from small mom-and-pop investors to mutual funds and insurers.
Shailendra Singh, managing director of PeakXV Partners, attributes this increased interest in IPOs to improved regulations and a broader spectrum of market participants. Their first fund of $9 billion deployed across many of India’s notable start-ups including Groww and Pine Labs. Yet Singh notes that today’s market is favorable for solid companies with visible fundamentals to make their way to a public offering.
“Historically there was no appetite for these high growth companies. This has now changed.” – Shailendra Singh
The IPO environment in India has changed drastically over the last couple of years. In 2021 alone, Indian tech start-ups raised an extraordinary $40 billion. By 2025, that total had shrunk to just $9.8 billion. Even with this decline, venture capitalists are quick to point out the quality of companies attracting funding has increased. As Anand Daniel, a partner at Accel, recently said, current deal volumes are lower than in peak years. He’s more excited about the new focus on deploying capital deliberately—an approach that he thinks will serve founders building for the long-term.
“We’ve moved from a phase of exuberance to one of thoughtful capital deployment. Deal volumes may be lower than the peak years, but the quality of companies being funded is higher,” – Anand Daniel
The $4.5 billion funding success of Lenskart, a firm providing digital eyewear alternatives, epitomizes that pattern. An extravagant judge on Shark Tank India launched the company. It quickly followed this up with a $821 million share offering, which sold out in hours. These quick sellouts demonstrate the high demand and more investor confidence in start-ups with good governance and profitability.
Daniel notes that today’s list is a marker on a long term shift back to businesses with strong fundamentals. That’s why he’s seeing many of the new start-ups refocusing and going back to the drawing board. At the same time, some are doing fantastically well in this public market environment.
“Strong businesses with clear fundamentals are going public, while some start-ups go back to the drawing board and reassess the future,” – Anand Daniel
Singh is quick to point out that Indian start-ups are closing down and failing less often. This underscores the incredible tenacity of the market.
“Today’s listings are grounded in profitability and good governance,” – Anand Daniel
This year’s IPO activity underscores a big change in what’s important to founders. Just as importantly, it sends the message that Indian start-ups are moving into a more mature stage, reshaping themselves to meet the needs of the market and focusing on long-term sustainability.
Singh is hopeful that this trend continues, but he cautions that the cyclical nature of capital markets makes predictions tricky. Whether 2026 will follow a similar course is an open question.
“The capital markets are inherently cyclical and it is impossible to say whether 2026 will be the same,” – Shailendra Singh