India’s Tech Startups Set to Go Public: A $100 Billion IPO Wave by 2027

India’s Tech Startups Set to Go Public: A $100 Billion IPO Wave by 2027

India’s technology startup ecosystem is gearing up for an unprecedented wave of public offerings, with over three dozen startups collectively valued at $100 billion expected to launch their IPOs by 2027. According to a report by The Rainmaker Group, the IPO landscape for Indian tech companies is set to witness a major transformation, presenting a golden opportunity for investors, entrepreneurs, and market watchers alike.

A New Era for Indian Startups

Over the past decade, India has emerged as one of the world’s most vibrant startup hubs, fostering innovation across fintech, e-commerce, SaaS, health tech, and other domains. The massive inflow of venture capital, increasing digital adoption, and government initiatives like ‘Startup India’ have played a pivotal role in this growth.

However, despite their high valuations, many Indian unicorns have traditionally preferred private funding rounds over public listings. The post-pandemic economic recovery and evolving regulatory frameworks are now shifting this trend, making IPOs an attractive exit strategy for investors.

What Makes 2027 a Landmark Year?

The period between 2021 and 2022 witnessed a wave of Indian startup IPOs, including Zomato, Paytm, Nykaa, and PolicyBazaar. While some of these companies faced volatility in stock performance post-listing, they have set a precedent for future IPOs.

According to Rainmaker executive Kashyap Chanchani, young startups today are in better shape than those that went public in the previous wave. Stronger business fundamentals, improved unit economics, and better corporate governance practices are making these companies more IPO-ready.

Moreover, Indian startups are expanding their global reach, tapping into new revenue streams and proving their resilience in challenging market conditions. This stability increases investor confidence, making IPOs a more feasible and attractive option.

Key Startups in the IPO Pipeline

Several high-profile startups are expected to go public over the next few years. Some of the most anticipated IPOs include:

1. Flipkart

One of India’s biggest e-commerce giants, Flipkart, is backed by Walmart and has been eyeing an IPO for a long time. The company is expected to list either on the Indian stock exchange or the US market, aiming for a multi-billion-dollar valuation.

2. PhonePe

PhonePe, a leading fintech player in India’s UPI payments ecosystem, has been rapidly expanding its services, including insurance and mutual funds. Given its deep penetration into India’s digital payments sector, a PhonePe IPO could attract massive investor interest.

3. OYO

OYO, the budget hospitality startup, has seen its ups and downs but continues to expand globally. After multiple IPO delays due to market conditions, OYO is restructuring its business to make a strong comeback in the public markets.

4. Swiggy

Swiggy, India’s top food delivery and hyperlocal delivery platform, is another contender. With significant growth in its grocery delivery vertical and strong investor backing, Swiggy’s IPO could be a game-changer.

5. Razorpay

One of the fastest-growing B2B fintech startups, Razorpay provides digital payment solutions to businesses. With increasing global expansion and revenue growth, it is a strong candidate for a blockbuster IPO.

Impact on the Indian Stock Market

A $100 billion wave of IPOs will bring fresh enthusiasm to Indian equity markets. The influx of high-growth startups will likely deepen retail and institutional investor participation, leading to greater liquidity and diversification.

Furthermore, the success of these IPOs will set a benchmark for future startups, encouraging more companies to explore public listings instead of relying solely on venture capital.

Challenges and Considerations

While the IPO boom presents immense opportunities, it also comes with challenges:

• Valuation Concerns: Some Indian startups have been criticized for their inflated valuations. Investors will closely scrutinize revenue models, profitability, and long-term sustainability.

• Regulatory Environment: SEBI (Securities and Exchange Board of India) is tightening regulations around IPO disclosures and governance to protect retail investors.

• Global Market Conditions: Economic fluctuations, interest rate changes, and geopolitical factors could impact investor sentiment and market performance.

Conclusion

India’s tech startup ecosystem is at an inflection point, with IPOs becoming the next big milestone for growth-stage companies. The next three years will define how these startups transition from privately held ventures to publicly traded companies.

For investors, the upcoming IPOs offer a unique opportunity to participate in India’s digital economy. For entrepreneurs, it signals a shift towards greater transparency, accountability, and scalability. As the market evolves, this IPO wave could cement India’s position as a global technology powerhouse.

Stay tuned as we track the journey of India’s biggest startups from boardrooms to the stock exchange!