Venture investors and bankers cautioned that sustaining last year’s momentum will hinge on broader market conditions as well as investor appetite for loss-making or newly profitable tech businesses, especially as public investors turn more selective on valuations, cash flow and post-listing performance.
Last year, new-age companies that listed on the exchanges mopped up nearly Rs 36,000 crore in public capital through initial public offerings (IPOs), providing meaningful liquidity to founders, early investors and employees. This included Ather Energy, Urban Company, Lenskart, Meesho, Groww, PhysicsWallah and Pine Labs, marking one of the busiest years for tech listings in India.
“The post-listing performance of new-age companies that went public in 2025 has been reasonably healthy, underscoring solid returns for public market investors,” said Ranvir Davda, co-head of Investment Banking at HSBC India. “The sector is increasingly being viewed as more mature.”
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“Multiple cohort of companies listed across 2021, 2024 and 2025 (have) demonstrated consistent post-listing financial performance,” said Davda of HSBC.
Earnings announcements by the companies that went public will help determine sentiment for the next cohort, he noted. “IPO pricing has also become more balanced, reflecting improved alignment between private market benchmarks and attractive entry points for public investors to participate in long-term growth,” Davda said.
Institutional investors are also tracking macro cues to get a handle on sentiment for these companies.
“The IPO market may start to heat up after the (February) budget around March but the depth of activity will hinge on broader macro triggers,” said a Mumbai-based fund manager with a large mutual fund. “We are watching for clarity on a potential US-India trade deal, the trajectory of oil prices and any targeted budget measures.”
For tech and consumer internet companies in particular, the focus is on profitability and cashflow visibility.
“The timing of large IPOs like Reliance Jio and SBI Funds will also matter,” he said. “Given their expected size, these issues could absorb a good share of investor liquidity and influence how much capital flows into other primary market deals.”
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2026 outlook
Large domestic and foreign institutions continue to anchor IPO books, with rising participation from insurers and pension funds, while larger free floats and post-listing sell-downs are drawing in emerging market investors. The shift signals a market that is available, but more selective, with sustained interest driven by execution rather than narrative alone, bankers said.
“Appetite for new-age companies has remained robust, with the ecosystem accounting for roughly one-fourth of total IPO fundraising in 2025,” said Gaurav Sood, managing director and head, equity capital markets, Avendus Capital. “While investors initially sought a margin of safety, given the evolving nature of these business models, improving profitability and clearer earnings visibility have strengthened confidence.”
This was evident from strong subscriptions for most large issues.
“Sentiment is positive but more selective,” Sood said. “The market has moved from ‘TAM and belief in the model’ to ‘clear path to profitability’. Investors are increasingly comfortable backing differentiated, scaled platforms, especially where margins provide downside protection.” TAM is the total addressable market.
Quick commerce platform Zepto made its confidential filing in December, looking to raise up to Rs 11,000 crore in fresh capital as it battles Eternal-owned Blinkit and Swiggy’s Instamart in the cash-guzzling, 10-minute delivery space. It’s planning to list in the September quarter.
Zepto’s filing was followed by hospitality startup Oyo, in what will be its third attempt to go public. It filed confidentially on December 31, looking to raise Rs 6,650 crore in fresh capital as it aims for a listing this year. Over the past two years, Oyo has posted a recovery in revenue and bottomline after getting hit by the Covid-19 pandemic. It turned profitable for the first time in FY24, and has stayed in the black.
Walmart-owned payments major PhonePe, which also filed confidentially in September, is looking to go public with an IPO size of around Rs 13,000-14,000 crore.
“Investor focus is expected to remain on large, scaled IPOs, with a more calibrated approach as multiple companies from the same segment come to market,” HSBC India’s Davda said. “In segments with existing listed peers, selection is likely to be more bottom-up, anchored around founder and governance quality, durability of growth, cashflow visibility and a clear path to profitability.”
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Unlocking value
The flurry of listings last year accelerated exits, with nearly Rs 18,000 crore–or more than half–of the total IPO proceeds coming from offers for sale by investors, early backers and founders. Peak XV was one of the biggest beneficiaries, diluting its stakes in startups such as Meesho, Groww, Wakefit, Capillary Technologies and Pine Labs, unlocking the value of its remaining holdings as stock prices rose after listing.
Meesho and Lenskart IPOs did the same for Japanese investor SoftBank, which will see portfolio company Oyo potentially go public this year. Early-stage investor Accel saw Urban Company and BlueStone go public.
Founders, senior management and employees also benefited. Employee stock option (Esop) pools worth about Rs 8,700 crore, or nearly $1 billion, became liquid as the companies went public.