Startup IPO Boom on the Horizon: India Eyes $100 Billion in Listings by 2027

India’s equity landscape is poised for a massive transformation, with over 3 dozen tech startups preparing for initial public offerings (IPOs) by 2027. According to a report, this new wave of public listings is valued at approximately $100 billion, marking a significant revival in India’s capital markets.

A Line-up of High-Profile IPO Contenders

Leading this surge are some of the country’s most prominent startups. Among them are Flipkart—supported by Walmart, digital payments leader PhonePe, and hospitality platform Oyo Hotels. These companies are preparing to tap into India’s robust public markets, which were the world’s second-largest for share sales in 2023 before experiencing a decline.

These upcoming IPOs suggest renewed confidence in the public markets after a subdued phase. A key difference this time, according to an Indian investment bank, is that many of the startups aiming to list are financially stronger compared to those that went public during the 2021–2022 boom. During that earlier cycle, several newly listed firms struggled to maintain their valuations. For instance, Paytm lost nearly 63% of its value, while Nykaa slipped about 4% post-listing.

Challenges in a Volatile Market Environment

Despite the enthusiasm for these upcoming offerings, the IPO market is not without challenges. India experienced a 34% drop in the number of share sales in the first quarter of 2025. This decline has been attributed to heightened market volatility, slowing economic growth, and downward revisions in corporate earnings.

The benchmark NSE Nifty 50 Index, after nearly a decade of gains, began to falter in late 2024. Consequently, IPO proceeds—including block deals and share placements—fell sharply, reaching only $7.1 billion in the first quarter. This figure positioned India behind other Asian markets such as Hong Kong and Japan.

Nevertheless, analysts remain optimistic about a market rebound. Notable upcoming deals include a $1.7 billion IPO by LG Electronics’ India division and a $400 million listing from electric two-wheeler maker Ather Energy.

Exit Avenues for Major Global Investors

A revival in IPO activity would also offer much-needed exit opportunities for major venture capital and private equity investors. Entities such as SoftBank Group Corp. and Prosus NV have invested heavily in India’s startup ecosystem and stand to benefit from these public listings.

SoftBank’s Vision Fund, for example, has significant stakes in Oyo, Lenskart, and used-car platform CARS24. Meanwhile, Prosus has backed e-commerce player Meesho and home services provider Urban Company. For such investors, successful IPOs would not only validate their long-term strategy but also provide capital to redeploy into new ventures.

Conclusion

While India’s IPO market has faced turbulence, the pipeline of over $100 billion in startup listings represents a major shift in investor sentiment and startup maturity. As companies prepare to test the public waters once again, the coming years could redefine India’s position in global capital markets—provided they navigate the challenges that lie ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.