In 2024, the Indian startups achieved a remarkable milestone as 13 new-age tech companies collectively raised ₹29,070 crore through initial public offerings (IPOs). When it comes to IPOs the figure stood at just 5 in 2023. This significant leap underscores the growing maturity of Indian startups and the strong investor confidence in the country’s equity markets.
The overall IPO market saw unprecedented growth, with the total number of listings rising to 298 from 243 in 2023 and fundraising volumes nearly tripling to ₹1.41 lakh crore. Among the startups, 12 out of 13 debuted at a premium, with major players like Swiggy and TAC Infosec delivering exceptional post-listing returns of 33% and 350%, respectively. By the end of the year, the combined market capitalization of 32 Indian tech companies exceeded $100 billion, reflecting the sector’s strong performance.
The main reason behind the success of these IPOs was focus on achieving profitability and adopting technology driven solutions of these startups. Companies like TAC Security and Unicommerce enhanced their performance through innovation tech platforms, while others like Swiggy and FirstCrys’ major priority was scalability to expand their customer base. Divya Anand, a partner at Stride Ventures highlighted the importance of profitability, stating, “ There should be a proven record that the company can control costs and generate EBITDA- positive growth.”
India’s strong economic growth, a rising middle class and increasing retail investor participation has helped investor’s enthusiasm stand strong throughout the year. With demat accounts reaching 171 million by August 2024, retail and institutional investors embraced the IPO wave, further energizing the market.
The success of 2024 has given a way for promising 2025, with over 20 tech startups, including PhonePe and Razorpay, preparing for public listings. This momentum indicates continued growth for India’s equity markets and supports the country’s position as a global startup powerhouse.
