India bucked the global trend in initial public offerings this year, establishing itself as a rare bright spot for tech listings while other major markets continue to struggle. The world’s most populous country is now gearing up for an even bigger wave of startup IPOs in 2025.
More than 20 startups are preparing to list next year, according to multiple sources familiar with the plans. These include business-to-business marketplaces Inframarket and Zetwork, farm-to-production venture Captain Fresh, professional services marketplace Urban Company, jewelry retailer Bluestone, security firm OneAssist, and offline-to-online retailer Magicpin.
Quick commerce startup Zepto, managed workspace provider Tablespace, and industrial goods platform of business are also planning to file IPOs next year. Additional companies eyeing public listings include Rebel Foods, logistics firm Porter, e-commerce platform Masho, investment app Groove, mattress seller Wakefit, automobile platform CarDekho, SaaS company Capillary, and payments firm Pine Labs, though some The lists may extend until 2026.
If they go as planned, the companies will join a wave that is gaining momentum. Already 12 startups, including seven technology firms, have gone public in 2024 in India, the only major market to show consistent growth in listings over the past decade, according to Pitchbook data.
This performance is in stark contrast to other leading markets. The U.S. recorded 22 venture-backed tech IPOs this year, roughly flat from 2023’s 21 tech IPOs and significantly down from 53 U.S. market listings in 2020. China’s tech IPO pace has similarly slowed, with 56 listings this year. to 117 in 2022. Europe has managed just one more tech IPO than India, while the UK market remains inactive without a tech listing in 2024.
“IPO markets opened slower than we expected in March,” analysts at Morgan Stanley wrote in a recent note. “Despite being ‘fit’ by 2022, many unicorns still remain unprofitable businesses.”
This month’s $1.35 billion listing of Indian food delivery platform Swiggy is the largest global tech IPO this year, according to JPMorgan analysis.
Speaking to TechCrunch, Anand Daniel, a partner at Accel, whose firm saw the listing of two portfolio companies this month, observed that “India is fast becoming a promising hub for tech IPOs that It is attracting considerable investor interest due to its strong capital markets and a thriving innovation ecosystem.”
The shift is an important one for the Indian market, which has historically struggled with exit opportunities and the skepticism of domestic institutional and retail investors about loss-making companies going public. is lying
Abhinav Bharti, JP Morgan’s India head of equity capital markets, attributes India’s unique position to several factors: macroeconomic growth, domestic capital growth, and political stability.
“No other country in the world gives you this much political certainty and policy continuity,” he told TechCrunch in an interview. “You can argue against a policy decision, but you can’t argue against the fact that they’re inconsistent.”
Growth in India’s capital markets has been particularly noteworthy. “And what has increased is actually liquidity, which is a huge part of market growth,” Bharti said. “If you look from 2019 to 2024, the average over the entire year, the market cap has doubled. We were at about $2.6 to $2.7 trillion. Now we’re at $5.2 trillion to $5.3 trillion. Daily liquidity has tripled over that period. From $5 billion to $15 billion.
The surge in IPO preparations comes amid a slowdown in private market dealmaking. “The muted environment and additional scrutiny from VCs forced startups to drop their high 2021 valuations,” said a partner at one of India’s largest venture capital firms on condition of anonymity. Told on “But more interestingly, it also forced them to improve their finances. The result is that many startups in 2021 that wanted to be ‘IPO ready’ in 5 years already are.”
In addition to Zepto, TableSpace, and others, Prosus-owned PayU recently announced plans for a 2025 listing, while pharmaceutical e-commerce platform Pharmacy is preparing for an IPO this year after significant restructuring. Financial services firm MobiKwik is also planning to list next year.
Tech companies and healthcare firms represent more than 50% of the S&P 500 index. The same firms account for less than 20 percent of India’s benchmark Nifty 50. Bharti said there is a lot of room for growth for tech companies in India.
Credit : techcrunch.com
