Strong exit opportunities are emerging for PE/VC investors as IPO activity accelerates. Startup funding in India is gaining momentum, supported by strong IPO activity and improving exit opportunities for investors. JPMorgan Chase projects 2025 IPOs to surpass 2024 levels, with Indian companies already raising US$ 8.2 billion through 49 IPOs as of August 2025. In 2024, India was the second largest IPO market, with US$ 20.5 billion raised via 91 offerings.
With over 150 thousand startups and more than 100 unicorns, India’s broader startup ecosystem continues to support the momentum in the IPO activities. With a rapidly expanding startup ecosystem, startup funding in India continues to benefit from increased investor confidence and market maturity. The pipeline for public listing remains strong with several highly anticipated listings expected in the second half of the fiscal year. According to Reuters, public offerings worth US$ 13 billion has been approved by the regulator and another US$ 18.7 billion are waiting approval. The growing pipeline of public listings shows how startup funding in India is closely linked to scalable and timely exit pathways.
Recent regulatory changes that streamline IPO approvals and lower public float requirements for large offerings are likely to further strengthen the equity markets and improve exit pathways for PE and VC-backed companies. Additionally, the Reserve Bank of India’s (RBI) one percentage interest rate cut the has strengthened market sentiment and supported a more favourable fundraising environment.
“In my view, India has a mature and well-regulated equity market, which serves as an important source of growth capital for private businesses and liquidity for early investors. Indian public market investors care about both growth and profitability. The recipe for success in the listed markets is a combination of rapid growth, profitability and easy to understand business models. The public markets in India play an important role in nurturing the private capital ecosystem,” said Mukul Gulati, Managing Partner, Zephyr Peacock India.
Sources: Financial Times, Reuters
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