$5.3 Billion and Rising: India’s Startup IPOs Rewrite the Funding Playbook

India’s venture-backed startups raised over Rs 44,000 crore ($5.3 billion) from public markets in FY25, marking a pivotal shift from private capital to IPOs, FPOs, and QIPs as the dominant growth engines. This fiscal year represented the first full market cycle for startup listings, transitioning from the IPO frenzy of 2021–22 to corrections in 2023 and a fundamentals-driven re-rating in 2024–25.

 

Key Highlights:

 

- Public markets surpassed private capital in late-stage fundraising

 

- Secondary exits crossed Rs 20,000 crore as PE/VC firms monetized early bets

 

- Mutual fund holdings in listed startups rose from 10% to 14% year-on-year

 

- Despite Rs 78,000 crore in FII outflows in Q1, foreign investors returned strongly by Q4

 

Structural Shifts:

 

- Zomato joined NIFTY50 and Sensex; Swiggy entered NIFTY Next 50

 

- Nykaa, PB Fintech, and Ola Electric inducted into NIFTY MidCap150

 

- Startups now fall into four performance archetypes: profitable scalers, margin-compromised growers, profit-first slow-growers, and high-burn strugglers

 

Investor Sentiment:

 

- IPOs are no longer hype-driven; valuation guardrails and governance standards are tightening

 

- Mutual funds and HNIs are favoring companies with credible narratives and disciplined growth

 

- Rainmaker Group’s RainGauge Index outperformed broader indices, signaling investor confidence in seasoned startups

 

Sources: The Hans India, Outlook Business, BusinessWorld, NewKerala.com, DTNext, Rainmaker Group