Market Scorecard: 13 Startups Raised Over INR 29K Cr Via IPOs In 2024

A successful IPO does not just hinge on a company’s readiness but also requires strong investor enthusiasm. In 2024, the Indian startup public listing landscape delivered on both fronts, making it a standout year in terms of both the number of IPOs and the total capital raised.

A total of 13 new-age tech companies went public last year, a sharp increase from just five in 2023. These 13 companies collectively raised INR 29,070 Cr via their initial public offerings (IPOs). While INR 18,770 Cr was raised via offer for sale (OFS), they raised INR 10,300 Cr via fresh issue.

The startup IPO momentum was in line with the broader public listing activity on Dalal Street. The overall IPO count grew by over 22% to 298 by December 3, 2024 from 243 in the entirety of 2023. Fundraising volume saw an even more dramatic increase, jumping 139% to INR 1.41 Lakh Cr from INR 58,827 Cr in the previous year, according to Market Intelligence data.

Among the 13 new-age tech companies that made their debut on the stock exchanges in 2024, 12 listed at a premium over their issue price. The sole exception was electric vehicle maker Ola Electric. 

Post-listing, many of these startups delivered impressive returns, with the likes of TAC Infosec and Swiggy closing 2024 with gains to the tune of around 350% and 33% from their listing price. 

Together, the 32 Indian new-age tech stocks under Inc42’s coverage ended the year with a market cap of over $100 Bn. 

Meanwhile, both institutional and retail investors embraced startup IPOs wholeheartedly. 

The IPOs also provided venture capitalists rewards for supporting the startup ecosystem for years. Some of them minted returns of over 30X from startups like Swiggy and BlackBuck. Prominent investors who turned their early startup bets into remarkable successes on Dalal Street in 2024 included Peak XV Partners, Accel, Matrix Partners, Tiger Global, SoftBank, Temasek, Elevation Capital, Prosus, Alpha Wave, among others. 

What Led To The Upsurge In IPOs?

Last year, the startup ecosystem revisited the IPO glory of 2021, when 10 startups made their bumper listing on the bourses. One of the reasons behind the increase in IPOs in 2024 was the positive investor sentiment in the broader market.

Overall, Indian bourses experienced a bull run in 2024, with benchmark indices Sensex and Nifty50 reaching record new highs. This turned investor sentiment positive, and retail, HNIs, and institutional investors looked to cash in on the increase. 

Besides, retail investor participation has been on the rise in the Indian equities market over the last few years, especially post-Covid. For instance, as per a September report by SBI Securities, the number of demat accounts in the country surged to 171 Mn as of August 2024 from 41 Mn in March 2020.

India’s robust economic growth and expanding middle and upper middle class made investors further bullish. Amid all these, SEBI continued to take steps to improve the regulatory framework, which further increased confidence in the public markets.

Meanwhile, new-age tech companies which went for IPOs also took a number of steps, like achieving profitability and seeking reasonable valuation, to make their public issue a success.  

Key Trends In IPO Listings Of 2024

The Magic Of Profitability 

The global economic slowdown and the subsequent rout of new-age tech stocks on bourses in 2022, along with the funding winter, made startups – listed as well as unlisted – turn their focus to profitability. Following this, they undertook restructuring and cost-cutting exercises over the past couple of years to improve their bottom lines. 

This trend was also visible in the new-age tech companies that went public in 2024. Most of these companies turned profitable or gave a clear path to profitability before launching their public issues.

Commenting on this trend, Divya Anand, partner at Stride Ventures, told Inc42, “Profitability should be imminent. There should be a demonstrated record of ability to deliver profitability… there has to be a proven record or demonstration that the company does control marketing costs and it does have the potential to generate EBITDA positive growth. The idea is to back businesses with strong unit economics today.” 

Notably, barring a few like Swiggy, FirstCry, and Ola Electric, all startups went public in 2024 after becoming profitable.

Investors Bullish On Tech Companies 

The successful listing of companies like Swiggy, Ola Electric, TAC Security and FirstCry underlined that technology-driven companies are back in favour with investors.

“A significant portion of IPOs in 2024 belonged to the technology sector. This shift reflects the growing maturity of investors who now differentiate between traditional and new-age tech businesses,” Krishna Appala, senior research analyst at Capitalmind Research, said.

He added that the success of IPOs of tech-driven companies globally boosted the confidence of such companies in India to go public. The Indian new-age tech ecosystem, which includes companies from fintech, ecommerce, EV, and insurance sectors, tapped into this favourable sentiment.

Meanwhile, Karthick Jonagadla, founder of Quantace Research, highlighted that all the new-age tech companies that went public in 2024 have technology as the differentiating factor.

“Startups like Unicommerce and TAC Security provide cloud-based and SaaS solutions, ensuring better performance with minimal infrastructure… Companies such as Swiggy and FirstCry leverage technology for scalability to reach millions of users. Technology also enables startups like ixigo and MobiKwik to expand market reach, bridging gaps that traditional models would struggle to overcome. This focus on technology allows companies to focus resources on growth and innovation,” he said. 

Banking on the positive sentiment among investors for tech companies, Swiggy became one of the largest tech IPO globally in 2024, as per JP Morgan.

Increase In Smaller-Sized IPOs

Barring Swiggy’s INR 11,324 Cr IPO and Ola Electric’s 6,145 Cr IPO, the other 11 startups that went public cumulatively raised a mere INR 12,173 Cr in 2024. In addition, seven out of the 13 startup IPOs were worth less than INR 600 Cr, highlighting the trend that this was a year of smaller-sized IPOs. 

Commenting on this trend, Appala said, “This trend reflects a strategic move by startups to raise funds while minimising risks associated with larger valuations. Smaller IPOs ensure better accessibility for retail investors. Additionally, smaller-sized IPOs are less exposed to market volatility, making them attractive for both companies and investors.”

While larger IPOs like Hyundai (INR 27,870 Cr) and Ola Electric (INR 6,146 Cr) made headlines, it was the consistent performance of smaller IPOs that instilled confidence among market participants, he added. 

Will Startup IPO Momentum Continue In 2025?

The success of new-age tech IPOs last year and the surge in their stock prices after listing has provided confidence to similar companies to go public in 2025. Big names like PhonePe, Groww, Razorpay, and Pine Labs, among others, have already moved their headquarters to India or are in the process of doing so with an eye on going public over the next couple of years. 

For 2025, nearly 23 new-age tech companies, including Ather Energy, PhysicsWallah, and Zepto, are eyeing a public listing and looking to raise more than INR 55K Cr (about $6.4 Bn) cumulatively.

The IPO pipeline for the broader Indian equities market also looks promising, with the likes of LG Electronics India, HDB Financial Services, among others, expected to launch their public issues this year. However, there are multiple factors that could spoil the party.

Macroeconomic challenges and global issues can prove to be the biggest hurdles. Foreign institutional investors (FIIs) have been on a selling spree in the Indian market over the last couple of months and the US Fed’s hawkish commentary has further muddied the waters. 

Besides, geopolitical uncertainty needs to be weighed in, especially with Donald Trump all set to be sworn in as the president of the US. 

“Trump’s return through high-profile US elections added new layers of complexity to inflation dynamics and geopolitical assessments… How will global inflation pan out with Trump at the helm, and will export be a more critical area to focus on than domestic cycles?” global brokerage firm Bernstein said in a recent note. 

The upcoming Union Budget, which will be presented by finance minister Nirmala Sitharaman on February 1, will also be keenly watched and the Indian market is expected to see volatility till then.

As such, while the IPO party for startups seems likely to continue in 2025, a lot would also depend on the performance of the broader Indian market.

[Edited By Vinaykumar Rai]