India’s Tech Startups Ignite Public Markets Despite Valuation Concerns
India’s tech startups are entering public markets at an impressive pace, despite concerns over high valuations. This trend reflects a significant shift in the country’s startup ecosystem, marking a maturation after a challenging funding period.
Recent IPOs and Market Demand
The recently concluded IPO of eyewear startup Lenskart raised $821 million and was sold out within hours of opening. Founded by a notable figure from Shark Tank India, Lenskart had a rocky debut on the stock market but still attracted considerable interest.
In the coming days, Groww, the largest retail brokerage in India backed by Microsoft CEO Satya Nadella, is set to launch its IPO. Groww’s offering has garnered 17 times more demand than available shares. Additionally, fintech unicorn Pine Labs is expected to list soon.
IPO Landscape in 2023
This year has witnessed an uptick in IPO activity, with over 43 startups going public by early November. This number is five times greater than the startups launched in 2020 and indicates a doubling since last year, demonstrating a renewed investor interest.
- Lenskart: $821 million, sold out rapidly
- Groww: 17 times oversubscription expected
- Pine Labs: Upcoming IPO
Investor Perspectives and Concerns
The influx of funding has raised questions regarding high valuations attached to many tech companies. Some experts argue that while the valuations may seem excessive, the market has evolved to accommodate these businesses.
Anil Joshi, an angel investor, expressed optimism about current market conditions, noting the opportunity for early investors to exit their investments. Shailendra Singh from PeakXV Partners highlighted that a diverse set of investors, including retail investors and mutual funds, are now more actively participating in IPOs.
Changing Investor Landscape
Historically, appetite for high-growth startups has been limited. However, this has shifted significantly. Singh noted that today’s IPOs are grounded in good governance and profitability, making them more attractive to investors.
Furthermore, fewer startups are shutting down, signaling a shift towards sustainability in the industry. According to Tracxn, only 724 startups ceased operations in 2025, an 81% decrease from the previous year’s figure.
Future of Indian Tech Startups
Despite recent successes, private equity and venture capital funding have not yet returned to pre-pandemic levels. Funds raised in 2025 stand at $9.8 billion, significantly lower than the $40 billion raised in 2021.
Neha Singh, co-founder of Tracxn, emphasized the focus on sustainability, profitability, and disciplined capital use among founders. This strategic pivot suggests a healthier long-term trajectory for the startup ecosystem.
Outlook
As policy changes support the sector, such as the removal of angel tax, investor confidence continues to grow. However, the future remains uncertain. Shailendra Singh warns about the cyclical nature of capital markets and the unpredictability of IPO momentum in 2026.
For now, investors are capitalizing on the appealing opportunities within the burgeoning public markets in India’s tech sector.
