There’s a clear shift happening in India’s startup world. Almost every promising startup you can name seems to be preparing for a stock market listing, and they all want to make their debut before 2026. Whether it’s the pressure to deliver returns to investors or simply the hunger to grow, one thing’s clear: the IPO rush is real.
1. A Strong IPO Market Push
In 2024, India saw one of its most active IPO years ever, with nearly 300 companies raising more than ₹1.4 trillion. That momentum hasn’t faded. Investors have plenty of cash to put into promising companies, especially in fintech, EVs, e-commerce, and quick commerce. When companies like Ather Energy went public this year, their IPOs were oversubscribed more than 12 times. That kind of market enthusiasm is encouraging founders across the startup scene to go public sooner rather than later.
2. Funding Timelines Are Kicking In
Behind closed doors, venture capital and private equity investors often attach timelines to funding rounds. Many Series D or Series E investments come with an understanding that an IPO will happen within 12–18 months. That’s part of what’s pushing names like Groww and Razorpay toward public listings. Groww, for instance, already filed its draft papers and is looking at a $700 million to $1 billion public issue in 2025. It’s what investors want — and companies don’t want to disappoint.
3. SEBI Relaxes IPO Rules to Encourage More Startup Listings
SEBI has rolled out new reforms to make it easier for startups to go public. The changes aim to boost founder participation with better Employee Stock Options (ESOP) benefits, simplify the reverse-flipping process, and widen the rules around minimum promoter shareholding requirements.
4. Listing in India Makes Sense Again
For years, successful Indian startups often thought about registering abroad. But new rules from SEBI and RBI now encourage companies to list at home. Simplified processes and tax incentives mean companies like Meesho — which recently shifted to a public company structure — see an IPO in India as their best next step. This move also gives them access to India’s huge retail investor base, which is more than eager to back home-grown companies they already recognise.
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5. Employee Expectations and Brand Strength
For most tech companies, public listings offer two big benefits: employee stock options become real money, and going public boosts their public profile. That’s why quick-commerce player Zepto and lifestyle brand boAt have public offerings on their calendars for 2025. boAt, for example, is eyeing a ₹3,000 crore IPO mid-year to build a bigger brand and reward its early teams. Employees want a clear path to cashing out their equity, and companies want to hold on to talent — IPOs help with both.
6. The Pipeline Is Growing Every Month
- Zepto — quick commerce, looking at a listing after rapid growth.
- boAt — consumer tech, expects to list mid-2025.
- Groww — wealth tech, has already filed DRHP for a $1 billion IPO.
- BlueStone — jewellery e-commerce, prepped its DRHP at the end of 2024.
- Ather Energy — EV scooters, successfully listed in April 2025.
- Companies like Captain Fresh, IndiQube, and Fractal Analytics are all preparing behind the scenes too.
7. Why Before 2026? Timing Matters
- Current Valuations — Many sectors are still hot, and founders want to list while investor interest is strong.
- Investor Agreements — Funds often plan their exits on a 7–10-year cycle, pushing startups to list.
- Employee Stock Liquidity — Employees who’ve been around for years want to unlock the value of their equity sooner rather than later.
Startups That Already Went Public in 2025
If you look at the names that successfully listed this year, it’s clear that the early movers benefit:
- Ather Energy went public in April 2025 with strong demand.
- Pure EV — followed suit and raised capital for further EV expansion.
- BlueStone is all set for its listing after filing papers last year.
Looking Ahead
With so many companies keen on listing before 2026, the next few quarters will be crucial. The pressure is on — founders need to execute, investors want returns, and the public is ready to buy in. If all goes well, India will see one of its most diverse IPO classes ever in the next 18 months. And for these startups, the time to go public is now — or risk missing the moment.
Written by Promita Ghosal
