Wed, 12 Nov 2025

Wed, 12 Nov 2025 India's start-ups fire up public markets amid valuation concerns

Start-up fundraising has raised uncomfortable questions about valuations, but signals a maturing ecosystem.
India's Start-up Listings Continue Unabated
* This week saw another unicorn, Lenskart, make its debut on India's stock markets with an $821m share offering that was sold out in under 2 hours.
* Groww, backed by Microsoft CEO Satya Nadella, also listed on Wednesday and received 17 times more demand from investors than shares available.
* Pine Labs, another fintech unicorn, is expected to list later this week. IPO Season Heats Up
* The current IPO season has seen a diverse range of tech start-ups, including Urban Company and Physics Wallah, tap the stock market for investor dollars.
* Experts say this signals a maturing of India's start-up ecosystem after a funding winter that saw money dry up. Concerns Over Expensive Valuations
* The expensive valuations commanded by these often-unprofitable new companies have raised several uncomfortable questions about the IPO frenzy.
* However, experts attribute the robust demand for these IPOs to better regulation and a wider diversity of participants, including small investors. Flush of Money Fuels 43 Start-up IPOs in 2025
* A total of 43 start-up IPOs have taken place this year until November, five times more than in 2020 and double the number in 2013.
* This is largely due to a flush of money from new investors, including mutual funds and insurers. Growing Concern Over Profitability
* New investors buying shares for the first time have little chance of making a profit, as many start-ups are yet to turn profitable.
* Experts say start-up founders should be sensible when pricing their shares for public listing. Improved Governance and Profitability
* The current listings are grounded in profitability and good governance, with strong businesses going public while others reassess their future.
* This trend is seen as encouraging, with fewer Indian start-ups shutting down compared to previous years. Private Equity Funding Still Slow
* Despite the IPO frenzy, private equity funding into new companies has not returned to pre-Covid levels, with $9.8bn raised in 2025 compared to $40bn in 2021.
* Experts say this is a sign of more thoughtful capital deployment, which is ultimately good for founders building for the long term. Policy Measures Expected to Boost Investor Confidence
* Recent policy measures, such as the abolition of an angel tax, are expected to further strengthen investor confidence in India.
* The momentum of start-up IPOs is likely to continue next year, but it's impossible to predict whether 2026 will be the same.
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