Ather Energy to Zepto: More than 20 startups prepare for IPOs in 2025

Companies increasingly prefer to make India their base, driven by strong liquidity, a booming digital economy and global investor interest in the country

When Tarun Mehta and Swapnil Jain were studying engineering at the Indian Institute of Technology Madras in 2012, they set out to launch a startup to manufacture battery packs for electric vehicles (EV). The friends soon realised that batteries were just one of several industry problems and that it needed a new EV. This led them to set up the smart electric scooter startup Ather Energy in 2013. They have achieved a lot since then. Ather is India’s leading electric scooter brand. It will launch an initial public offering (IPO) this year, aiming to raise ₹3,100 crore through a fresh issue and an offer-for-sale, with a target valuation of about $2.4 billion.

 

“We believe that the company has done good work in the last 12 years, and it is ready for the public market,” said Jain, cofounder and chief technology officer of Ather Energy, in an interview.

 

Ather is among several startups aiming to launch an IPO in 2025 and later. India’s startup ecosystem is experiencing a surge in IPOs, marking a shift from the practice of companies that preferred to list in Singapore or the United States (US).

 

New age companies – typically driven by technology and focused on digital services – are expected to play a crucial role in India’s IPO boom. There are about 30 such listed companies with a combined market capitalisation of more than $110 billion, of which the top 15 account for $80 billion, according to Redseer Strategy Consultants. New age companies’ market cap is expected to reach $1 trillion by 2030, driven by IPO-ready businesses, a robust regulatory environment, and domestic investments, according to the marketing consultancy firm.

 

“There were over 330 IPOs in 2024 in India, accounting for 31 per cent of global IPO volumes and raising about $20 billion, the most after the US. India is definitely coming of age,” said Ranvir Davda, co-head of investment banking, HSBC India, during a panel discussion comprising industry leaders at a recent Redseer event. “We are dealing with short-term turbulence in the (market), but we believe in the long-term structural story of India. There is a $13 trillion market cap target for the country by 2030 and the new age tech stocks are expected to be a fulcrum of that.”

 

The transformation has positioned India as a preferred destination for startups aiming to go public. Notable IPO successes include food and grocery deliverer Swiggy and Ola Electric, an EV manufacturer. Swiggy’s $1.35 billion IPO in November was the second biggest in 2024, next only to Hyundai Motor India's $3.3 billion IPO in October, and was oversubscribed more than fourfold. Ola Electric’s shares jumped 20 per cent on their trading debut on August 9, 2024, bringing the company’s valuation to $4.8 billion. The $734 million IPO was one of the largest in India in 2024.

 

“About 10-15 years ago, there were big questions about whether VC-backed companies in India could successfully go public and how public markets would value them. That question has largely been answered,” said Barath Shankar Subramanian, partner at venture capital firm Accel, which earned 35x returns on its investment in Swiggy's IPO. Several firms in Accel’s portfolio are preparing for public listing in 2025.

 

Year of startup IPOs

 

More than 20 startups are expected to launch IPOs in India in 2025. Prominent names include online jewellery platform Bluestone, quick-commerce firm Zepto, electronics company Boat, and Ather.

 

“Indian startups have demonstrated stronger performance compared to their global counterparts, making IPOs a more attractive proposition for both companies and investors,” said Anil Joshi, founder and managing partner at Unicorn India Ventures and member of the VC Council at the Indian Venture and Alternate Capital Association. Retail participation in the market has surged almost fourfold in four to five years, bringing in a new wave of investors.

 

India once saw promising startups shifting base overseas due to a favourable regulatory environment, Joshi said. However, recent reforms by the Securities and Exchange Board of India have improved the IPO framework and made the country a more attractive listing destination. The regulator’s key changes include a robust small and medium enterprises IPO framework with stronger investor protection, stricter ESG (environmental, social, and governance) requirements, and improved due diligence by merchant bankers. These reforms have not only boosted investor confidence but also made India a compelling choice for high-potential startups looking to go public.

 

Siddarth Pai, founding partner, chief financial officer and ESG Officer of VC firm 3one4 Capital, said the surge in startup IPOs is also driven by increasing public acceptance of growth companies and businesses reducing burn and becoming profitable. Pai believes that when online food deliverer Zomato launched its IPO in 2021, it gave confidence to other startups. Their founders studied Zomato Chief Executive Officer Deepinder Goyal’s journey in dealing with the market. “Successful listings by others helped boost confidence among founders around positioning their companies,” said Pai.

 

India’s stock market has been turbulent for months now due to factors such as global economic concerns, trade tensions with the US, and domestic reasons.

 

Sunny Agrawal, head of fundamental research at SBICAP Securities, said the recent market turbulence would in the near term affect the frequency of IPOs due to the “risk-off environment”. However, India remains attractive in terms of valuations, and supply-side pressure from foreign institutional investors is expected to ease when there is clarity about the implications of US President Donald Trump’s tariffs. “Once the equity market stabilises, we expect IPOs to start hitting the street in April and May this year,” said Agrawal.

 

“With oil prices falling below $70 and Trump’s tariff wars expected to see some action in a couple of quarters, we should see sentiments change in a few months,” said Pai of 3one4 Capital.

 

Heading home

 

Several Indian startups domiciled abroad are shifting their base, or reverse-flipping, to India. Fintech company PhonePe recently said it had started preparations for a potential listing in the country. In December 2022, PhonePe shifted its domicile from Singapore to India. PhonePe’s investors, led by Walmart, had to pay about ₹8,000 crore in taxes to allow the fintech firm to shift its domicile to India. PhonePe said its “strong top line and bottom line growth” across business portfolios made it a suitable time for public listing.

 

About startups returning home for listing, Pai said a company with a market of less than $10 billion was considered small in the US. In India, such a company would be regarded as mid or largecap. Indian companies in the US do not have the same brand recall as they enjoy in India. “When the market is in India, the revenue is from India, the team is from India – choosing to list overseas and miss out on the action in India doesn’t make sense,” said Pai.

 

Industry experts believe that sectors such as ecommerce, EV, fintech, coworking, food, eyewear, and healthcare are well positioned for IPOs in 2025 and beyond.

 

For instance, eyewear startup Lenskart is preparing for its IPO and plans to file its draft papers by May 2025. The company is aiming for a $10 billion valuation for the offering, which would be double the value of its last funding round, according to sources.

 

Listing now

 

> 30 listed new age companies have combined market cap of over $110 bn

> 15 top new age companies have market cap of over $80 bn

> $1 trn: Expected market cap of new age companies by 2030

> Over 20 startups are expected to launch IPOs in India in 2025

> Firms in sectors as varied as ecommerce, fintech, coworking, eyewear set for IPOs

> Major startups planning IPOs include Bluestone (jewellery), Zepto (quick commerce), Boat (electronics)