The year 2025 is shaping up to be a record-breaking year for start-up IPOs, with nearly 25 companies preparing to go public, almost double the number compared to the previous year. This surge in IPO activity is expected to be driven by highly anticipated offerings from companies such as Ather Energy, Bluestone, Avanse, Aye Finance, and many others.
Industry experts are optimistic about the IPO market in India, with Vipul Patel from IIMA Ventures stating that the momentum from 2024 is expected to continue into 2025. Founding Partner of 8i Ventures, Vikram Chachra, highlighted that founders have realized the IPO market is open even for smaller businesses.
In 2024, 13 new-age tech start-ups collectively raised over $3.4 billion through IPOs, indicating a strong interest in the public markets. VCs are excited about the opportunity in IPOs, with companies like Swiggy setting a positive example for other start-ups. Investors, both domestic and foreign, are showing keen interest in IPOs, driven by the promising growth prospects of Indian start-ups.
Of the 25 companies gearing up for public listing, some have already filed their DRHPs with SEBI. Smartworks and Ecom Express have received approval from SEBI to file their IPOs, showcasing the growing interest in IPOs among investors. Pareekh Jain, Founder of Pareekh Consulting & EIIR Trend, noted that people are willing to pay high multiples for companies that show strong growth potential.
Overall, industry experts believe that the IPO market is wide open, especially for mid and large start-ups. With the Indian market cap from the internet sector still relatively low, there is significant room for growth in the IPO space. The surge in IPO filings and investor interest in new-age companies signal a promising year ahead for start-up public listings in 2025.
