India’s start-up scene is witnessing a historic surge in IPO activity throughout 2025, establishing the country as a key player in global capital markets despite ongoing valuation concerns.
October alone saw record-breaking capital raises nearing ₹46,000 crore, propelled by major players like Tata Capital, LG Electronics India, and Lenskart, the latter founded by a Shark Tank India judge.
So far, approximately 245 companies have gone public in this financial year, generating around ₹1.3 lakh crore amid market volatility. This boom reflects strong domestic investor confidence and abundant liquidity.
The sector’s IPO spectrum is broad, covering fintech firms like Pine Labs, retail brokerage Groww backed by Microsoft CEO Satya Nadella (which experienced a 17-fold oversubscription), and companies such as Urban Company and Education tech unicorn Physics Wallah. This transition signals a maturation where start-ups are moving toward financial discipline, solid governance, and profitability.
Despite this enthusiasm, elevated valuations pose a risk to new retail investors, while early stakeholders cash out handsomely. Industry experts affirm these pricing levels mirror global trends for high-growth tech firms but urge sensible share pricing to protect smaller investors. Successful IPOs from Zomato, Nykaa, and Ixigo exemplify potential sustained benefits when companies focus on strong fundamentals.
Notably, the start-up failure rate has plummeted, with an 81% decline in closures from 2024 to 2025, displaying a shift from swift expansion to sustainable, profitable growth.
However, private equity and venture capital investments, at $9.8 billion this year, lag well behind the $40 billion peak in 2021, despite improved quality of deals. The recent abolition of the angel tax is expected to further enhance investor sentiment and funding flows.
Domestic investors now dominate India’s IPO funding, accounting for about 75%, marking a shift towards homegrown capital markets leadership. While market cycles inject uncertainty about 2026’s trajectory, current trends show private and retail investors actively realising gains from early start-up investments.