India’s startup ecosystem has grown rapidly over the last decade, with several companies emerging as global players in tech, e-commerce, and fintech. By 2027, over three dozen Indian tech startups with a combined valuation of $100 billion are expected to go public, marking a major milestone in India’s capital markets. Here’s a look at the companies poised to go public and the lessons learned from the past IPO wave.
1. Flipkart: A Leading E-Commerce Giant
Flipkart, the Walmart-controlled e-commerce giant, is one of the frontrunners in India’s IPO pipeline. After years of rapid growth, Flipkart is now focusing on profitability and transparency—key aspects that will help it rebound after the less-than-ideal IPO performances of some other tech startups in India.
2. PhonePe: Revolutionizing Payments in India
PhonePe, India’s leading digital payments platform, is another major player preparing for an IPO. With a focus on growth and profitability, PhonePe aims to ride the wave of India’s growing digital payment market, making it an attractive option for investors in the coming years.
3. Oyo Hotels: Global Hospitality Leader
Oyo Hotels, a leader in the budget hospitality sector, has been preparing for a public offering. With several international expansions and a solid market presence, Oyo’s IPO is expected to gain significant attention from investors looking to tap into India’s burgeoning tourism industry.
4. Ather Energy: Powering the Future of Mobility
Ather Energy, an electric scooter maker, is also gearing up for an IPO. As India moves toward sustainable and electric mobility solutions, Ather is positioned to capitalize on this trend, attracting eco-conscious investors and contributing to India’s green revolution.
5. Lenskart and CARS24: Eyeing Growth in Their Respective Sectors
Other notable startups like Lenskart and CARS24 are also making strides toward a public listing. Lenskart, a leader in the eyewear market, and CARS24, a used-car marketplace, are both showing strong growth potential, making them prime candidates for future IPOs.
Rebounding from Past Failures
The IPO landscape in India has had its share of challenges, especially after the high-profile failures of Paytm and Nykaa. Both companies saw their stock prices drop significantly post-listing, underscoring the importance of realistic valuations. Kashyap Chanchani from Rainmaker Group noted that the startups preparing for IPOs in the next two years are in a far healthier financial position, with two-thirds of them already profitable and more transparent in their operations.
Impact of SoftBank and Prosus on IPOs
Large investors like SoftBank and Prosus have a significant stake in Indian startups and are looking for a profitable exit through IPOs. However, as Chanchani cautions, IPOs must be priced carefully to avoid another wave of investor rejection. The public markets will be closely watching the performance of these high-profile startups as they navigate the complex dynamics of market valuation and investor expectations.
India’s startup economy remains among the biggest in the world after the US and China. Still, it’s also one that’s seen major corporate governance lapses, sinking valuations and profits turning to dust. Many young firms have been forced to cut jobs and growth plans, while others have imploded. Teacher-turned-entrepreneur Byju Raveendran’s eponymous online tutoring business illustrates how a once high-flying company can run aground as investors lose faith in founders once-labeled charismatic.
Conclusion: A Promising Future for Indian Tech Startups
Despite the challenges faced by Indian startups in the IPO market, the future looks promising. The tech startup sector in India continues to thrive, with companies like Flipkart, PhonePe, and Oyo leading the charge. As these companies prepare for their public listings, they must strike the right balance between growth and profitability, ensuring they are ready to meet investor expectations. The next few years will be crucial for Indian startups as they aim to go public and cement their place in the global market.
For more insights on the startup IPO landscape in India, stay tuned for our upcoming posts.
