The Indian start-up ecosystem is experiencing a vibrant period, characterized by a notable increase in initial public offerings (IPOs) as companies aim to raise funds in the stock market. Recently, the eyewear start-up Lenskart completed a substantial $821 million share offering, which sold out in mere hours despite its high valuation. This rapid success comes on the heels of a somewhat volatile market debut, underscoring the unpredictable nature of IPO launches.
In addition to Lenskart, other tech companies like Groww, the nation’s largest retail brokerage—which has garnered backing from Microsoft CEO Satya Nadella—are also entering the public sphere. The demand for Groww’s shares exceeded expectations dramatically, with investors expressing 17 times more interest than the available shares. Furthermore, Pine Labs, a prominent fintech unicorn, is also poised for an upcoming listing.
These departures from the private market occur during a turbid, yet well-received, IPO season for start-ups, where diverse players—ranging from home services platforms to educational technology businesses—are now turning to equity markets for capital. This trend marks a significant turnaround for early-stage venture capitalists, who previously encountered a funding drought. Investors have expressed concerns about the high valuations and the prospects for ordinary investors, who, while buying shares at launch, may struggle to see significant returns.
Anil Joshi, an angel investor with a portfolio of approximately 100 startups, shared insights on the necessity of these IPOs as an exit strategy for early-stage investments made years ago. According to venture capital expert Shailendra Singh, the burgeoning participation of an array of investors, including retail investors and institutional funds, is reconfiguring the landscape of equity markets in India.
Data from the market intelligence firm Tracxn reveals that as of November, 43 start-up IPOs have occurred in 2025, which is five times the number recorded in 2020 and double that of 2023. Despite the excitement surrounding these IPOs, concerns linger regarding the sustainability of returns for new retail investors.
Singh acknowledges that the market’s appetite for high-growth companies has evolved, prompting a more cautious approach towards pricing shares. Notably, IPOs like those from Zomato and Nykaa have yielded favorable outcomes for investors, emphasizing that many start-ups are now entering the market with established business models and promising governance structures.
The overall landscape suggests a gradual shift toward “strategic sustainability” in the start-up space, as echoed by Neha Singh, co-founder of Tracxn. This trend reflects a wiser approach to capital use and operational efficiency, which has led to a marked decrease in start-up closures.
Although private equity and venture capital funding has not yet rebounded to pre-pandemic levels, with 2025 tech start-up fundraising figures significantly lower than those of 2021, the inclination towards “thoughtful capital deployment” is being positively noted. This qualitative enhancement in company funding could bode well for the long-term growth of firms committed to delivering value over mere expansion.
The impact of regulatory changes, such as the removal of the angel tax, is also expected to boost confidence within the investor community. Whether this momentum in start-up IPOs will carry into the following year remains uncertain, as capital markets are known to be cyclical. For now, early investors are enjoying the benefits of an engaging public market that is showcasing the potential of India’s burgeoning start-up landscape.
