In 2024, Indian startups struggled to attract private investors but found strong support in public markets. Thirteen startups successfully listed on stock exchanges, including Swiggy, Ola Electric, and FirstCry. The year ended with the digital banking platform MobiKwik also going public.

“Startups believe now is the right time to go public because public markets value them higher than private investors,” said Vikram Chachra, Founding Partner of 8i Ventures.

The startup ecosystem learned valuable lessons in 2024 after a tough experience in 2021. Back then, startups like Zomato, Nykaa, Policybazaar, and Paytm faced poor stock performance due to unrealistic valuations, unclear financial metrics, and weak communication. This year, startups avoided inflated valuations, resulting in better outcomes. For example, Swiggy and FirstCry maintained realistic valuations, while Ola Electric and MobiKwik lowered theirs.

This cautious approach paid off. Most startups maintained or improved their stock prices post-IPO, unlike in 2021. Even Ola Electric, whose stock initially dropped, saw recovery later. Smaller startups like Unicommerce also succeeded, raising ₹277 crore despite modest revenue.

With favorable conditions, more startups plan to list in 2025. Bluestone, Ecom Express, and others like Zetwerk, Meesho, and Zepto are preparing for IPOs. Going public also gives startups easier access to capital through debt or institutional placements, unlike venture funding, which involves complex approvals.

Public listings also create wealth for founders and employees, who can sell their shares freely—an advantage not available in private markets. Despite accounting for only 1.5% of India’s stock market value, digital startups have significant growth potential, given their contribution to the economy.

However, challenges remain. Startups must prove profitability to sustain investor confidence. Poor financial performance could lead to steep stock declines, as seen with Honasa Consumer. On the other hand, success stories like Zomato, which tripled its market value in three years due to strong financials, show the rewards of steady growth.

The stock market’s buoyancy in 2024, with the BSE Sensex rising from 71,000 to 79,000 points, provided a supportive environment for these IPOs. Startups are now better positioned to navigate public markets and build on this momentum in 2025.