Despite recent successes, IPO market still won’t fully open until 2025

This year has shown that start-ups are willing to go public even in a challenging market—and they can be rewarded for it. However, bankers, lawyers, and investors caution that recent IPO successes won't likely lead to more than a dozen tech IPOs this year.

Following the announcement of the results of the 2024 Lok Sabha elections, start-ups in the emerging economy sector poised for their public market debut are now seeking expert guidance amid stock market fluctuations. According to a report in The Economic Times , these companies are consulting on the optimal timing for their IPOs while remaining optimistic about India’s robust macroeconomic outlook, as highlighted by IPO-bound founders, investors, and investment bankers.

The startup sector in India is anticipating an increase in significant transactions, a trend that has been gathering pace in recent months with several $100-million deals nearing finalization, as per the news report.

Companies gearing up for an IPO include the omnichannel retailer FirstCry.com (BrainBees Solutions Ltd.) , food and grocery delivery platform Swiggy electric vehicle manufacturer Ola Electric , and ecommerce software company Unicommerce. These companies have submitted draft papers with the market regulator for their public offerings. Additionally, omnichannel jewellery retailer Bluestone is preparing to file its draft IPO papers later this year.

In 2024, there has been a resurgence in significant funding deals after a prolonged slowdown in startup investments. Several transactions, each exceeding $100 million, have been finalized. Companies such as beauty retailer Purplle, health supplements startup HealthKart, and ride-hailing platform Rapido are among those involved in these deals.

Lenskart, an eyewear retailer, recently concluded a $200 million secondary funding round earlier this month. The round was led by Temasek and Fidelity, valuing the company at $5 billion.