Indian startups faced some tough times this year in private markets, but the public markets were just the opposite. Thirteen startups like Swiggy, Ola Electric, FirstCry and MobiKwik made their debut on the stock exchanges. The IPOs were of course a financial move, but also was a gesture of the growing maturity of the Indian startup ecosystem.
The year was a contrast to the IPOs of 2021 when many investors were left disappointed. Startups like Paytm and Zomato then stumbled with sky-high valuations and unclear business metrics. The results were underwhelming equipped with drop in share prices. However, startups seem to have learned their lesson and they approached the public markets with realistic valuations and with well-thought-out strategies.
Swiggy and FirstCry didn’t inflate their IPO valuations, but Swiggy stuck to its last private market valuation of $11.3 billion while FirstCry stayed at $3 billion. Companies like Ola Electric and MobiKwik lowered their valuations to ensure a smooth entry into public markets. The shift in mindset paid off and most IPOs performed well revealing that realistic pricing attracts investor trust.
Public markets offer startups something that private markets often don’t and it is the flexibility as well as access to capital. Zomato went public in 2021 and raised $1 billion in 2024 through institutional investors.
Startups need to prove their worth by showing profitability and of course the strong growth. Their stock prices could take a hit if they fail as seen with Honasa Consumer. Success stories like Zomato show what is possible with the right strategy.
We are now embracing 2025 and many more startups are gearing up for the IPOs. The public markets seem ready to embrace them. Private markets remain chilly and the sun is still shining on startups in the public space.
