India's startup ecosystem is poised for a historic milestone in 2025, with 23 companies preparing for initial public offerings (IPOs) to raise over INR 55,000 crore ($6.4 billion). Following a robust 2024, where 13 new-age firms mobilized INR 29,000 crore, India has strengthened its position as Asia's leading IPO market and the world's second-largest after the United States. Driven by strong retail participation, rationalized valuations, supportive financial reforms, and a vibrant macroeconomic backdrop, this pipeline spans fintech, quick commerce, consumer goods, edtech, electric vehicles (EVs), and real estate.
Leading the charge are Belstar Microfinance's delayed $500-700 million offering, Rebel Foods' $1.4 billion foodtech ambition, and Eldeco Infrastructure's INR 1,000 crore realty venture. This calls for exploring these trailblazers, the broader pipeline, financial easing benefits, market drivers, risks, and the profound economic implications of this IPO surge.
Belstar Microfinance: Empowering Rural India Amid ChallengesBelstar Microfinance, a subsidiary of Muthoot Finance, is a cornerstone of India's financial inclusion efforts. Founded in 2013 and acquired in 2018, Belstar serves over 2.5 million clients, 95 percent of whom are women, across 1,500 branches in 17 states. Its loan portfolio, with average ticket sizes of INR 25,000 to 50,000, includes Micro Enterprise Loans, Small Enterprise Loans, Festival Loans, Education Loans, Consumer Goods Loans, and Emergency Loans. With assets under management (AUM) of INR 11,200 crore in FY25, Belstar targets a 25 percent AUM CAGR to reach INR 15,000 crore by FY26.Originally planned for late 2024, Belstar's $500-700 million (INR 4,400-6,100 crore) IPO was postponed to late 2025 due to a visa-related slowdown in client remittances, triggered by stricter U.S. visa policies. This contributed to a 37 percent profit decline to INR 52.6 crore in Q2 FY25 (July-September 2024), with gross non-performing assets (NPAs) rising to 2.5 percent from 1.8 percent year-over-year. The IPO, combining a fresh issue for lending expansion and an offer-for-sale (OFS) by promoters, will fund 500 new branches, AI-driven credit scoring technology, and risk mitigation reserves. Priced at 2 to 2.5 times book value, Belstar aligns with the Reserve Bank of India's (RBI) priority sector lending objectives.George Alexander Muthoot, Managing Director of Muthoot Finance, stated: "Despite short-term challenges, Belstar's focus on women entrepreneurs and its scalable model ensure sustained growth."
Financial Snapshot (FY25):
Revenue from Operations: INR 2,450 crore (+18 percent YoY)
Net Profit: INR 210 crore (-15 percent YoY)
AUM: INR 11,200 crore (+22 percent YoY)
Return on Assets (RoA): 3.2 percent (-0.5 points)
Return on Equity (RoE): 12.5 percent (-2 points)
Challenges: Sector-wide stress affects 80 percent of microfinance institutions, with fintech competitors like Paytm narrowing margins. Recovery is projected to take three to four quarters, but Belstar's 8,000-strong workforce and Muthoot's backing position it to replicate Ujjivan Small Finance Bank's 2021 IPO success, which saw a 20 percent post-listing gain.
Rebel Foods: Redefining Foodtech with Global Reach
Rebel Foods, a Pune-based unicorn, has transformed from a cloud kitchen pioneer to a global foodtech leader. Founded in 2011 as Faasos by Jaydeep Barman and Kallol Banerjee, it operates over 450 kitchens across 75 Indian cities and international markets including the UAE, Indonesia, and the United Kingdom, processing 2.5 lakh daily orders. Its portfolio of 45 brands, such as Behrouz Biryani, Oven Story Pizza, SLAY Coffee, and Wendy's India (with 160 outlets), caters to diverse consumer preferences. A $25 million investment from Qatar Investment Authority (QIA) in April 2025 reinforced its $1.4 billion valuation, building on $773 million raised from investors like KKR, Temasek, and Lightbox.Rebel's $1.4 billion IPO, targeted for mid-2026, is nearing its Draft Red Herring Prospectus (DRHP) filing. The INR 1,200 crore raise (INR 500 crore fresh issue, remainder OFS) will support 10 new Eatsure food courts in metropolitan cities, AI-driven personalization for customer retention, and expansion of 100 kitchens in the MENA region. FY24 revenues grew 19 percent to INR 1,420 crore, with 97 percent from food sales, and losses narrowed to INR 150 crore through 15 percent EBITDA margins. Founders hold 12 percent, while QIA owns 9.9 percent, positioning the IPO as a venture capital exit opportunity.
Jaydeep Barman, Co-Founder of Rebel Foods, remarked: "Our shift to omnichannel with Eatsure and global brands like Wendy's positions Rebel to lead the next phase of foodtech innovation."
Brand Portfolio Snapshot:
Behrouz Biryani: 50,000 daily orders, India and UAE
Oven Story Pizza: 30,000 daily orders, 20 cities
Wendy's India: 20,000 daily orders, 10 cities
Eatsure Food Courts: Emerging, 4 metropolitan hubs (Mumbai, Pune, Bengaluru, Delhi)
Challenges: Intense competition from Curefoods and Biryani By Kilo, coupled with 10 percent delivery cost inflation, pressures profitability. However, 100 percent year-over-year order growth and strategic partnerships with Wendy's provide a competitive edge in a market where Zomato trades at three times FY25 sales multiples.
Eldeco Infrastructure: Powering India's Urban Growth
Eldeco Infrastructure and Properties, a Haryana-based real estate leader since 1984, is capitalizing on India's urbanization surge. Having delivered 86 projects totaling 50 million square feet across over 20 cities, Eldeco manages 19 ongoing projects (7.24 million square feet) and 18 upcoming projects (7.37 million square feet) in 14 cities, spanning residential, commercial, and plotted developments. Its September 2025 DRHP outlines a INR 1,000 crore IPO: INR 800 crore fresh issuance (face value INR 5 per share) and INR 200 crore OFS by promoters Pankaj Bajaj (INR 102 crore) and Bandana Kohli (INR 98 crore). A potential INR 160 crore pre-IPO placement may reduce the fresh issue. Proceeds will repay INR 600 crore of subsidiary debt, lowering net gearing from 0.8x to 0.4x, and fund land acquisitions in NCR and tier-II cities like Lucknow and Kanpur.FY25 revenues tripled to INR 695 crore due to project completions, but a INR 64 crore loss (compared to a INR 10 crore profit in FY24) resulted from one-time charges and execution delays. With 100 percent RERA-compliant bookings and a 15 percent CAGR in sales, Eldeco targets 20 percent volume growth. The IPO, managed by IIFL Capital and JM Financial, aims for BSE and NSE listing at 1 to 1.5 times book value.
Pankaj Bajaj, Chairman of Eldeco Infrastructure, noted: "Our disciplined execution and strategic debt reduction make Eldeco a reliable investment in India's real estate upcycle."Project Pipeline (March 2025):
Ongoing Residential: 4.5 million square feet, 14 cities
Ongoing Commercial/Plotted: 2.74 million square feet
Forthcoming Residential: 4.2 million square feet
Forthcoming Commercial/Plotted: 3.17 million square feet
Challenges: Sensitivity to interest rates (repo at 6.5 percent) and a 10 percent inventory surplus in tier-II cities present risks. However, the PM Awas Yojana 2.0, with INR 5,000 crore for affordable housing, offers significant growth potential.
The Broader Pipeline:
A Diverse Cohort of 23 StartupsThe 2025 IPO pipeline encompasses 23 startups across multiple sectors, collectively aiming to raise INR 55,000 crore. Key players include:
Groww: The Bengaluru-based brokerage unicorn, valued at $3 billion, plans a $1 billion+ IPO in Q1 2025. With over 50 million demat accounts and zero-commission trading, it reported FY24 revenue of INR 2,900 crore (+120 percent YoY). The IPO will fund technology enhancements and international expansion into Southeast Asia.
Zepto: The quick commerce leader, valued at $5 billion after a $340 million raise, targets a $1.5 billion IPO by mid-2025. Its 500+ dark stores and 10-minute delivery model drive INR 12,000 crore annualized gross merchandise value (GMV), with FY24 losses reduced 50 percent to INR 600 crore.
Pine Labs: The Noida-based fintech, valued at $5 billion, aims for a $1 billion IPO in Q2 2025, focusing on point-of-sale solutions and buy-now-pay-later (BNPL) offerings. FY24 revenue reached INR 1,800 crore (+30 percent YoY), with plans to expand merchant networks to 500,000.
Bluestone: The jewelry direct-to-consumer brand filed its DRHP for a INR 1,000 crore IPO to expand its 300+ stores and compete with Tanishq. FY24 revenue was INR 1,200 crore (+40 percent YoY).
Ather Energy: The EV manufacturer, backed by Hero MotoCorp, filed for a INR 3,100 crore IPO to scale scooter production (450,000 units sold) and battery infrastructure. FY24 revenue hit INR 2,000 crore (+50 percent YoY).
PhysicsWallah: The edtech unicorn, valued at $2.8 billion, plans a INR 2,000 crore IPO to expand 100+ offline centers across India. FY24 revenue was INR 1,500 crore (+80 percent YoY).
Ecom Express: With SEBI approval, the logistics firm targets a INR 2,600 crore IPO to enhance its 3,000+ delivery hubs. FY24 revenue was INR 2,400 crore (+25 percent YoY).
Porter: The intra-city logistics provider eyes a INR 1,500 crore IPO, leveraging 5 million+ monthly deliveries. FY24 revenue reached INR 1,000 crore (+35 percent YoY).
PharmEasy: After debt restructuring, the healthtech firm plans a INR 2,000 crore IPO to scale 1,000+ pharmacy hubs. FY24 revenue was INR 6,500 crore (+15 percent YoY).
DevX: The coworking startup filed for a INR 500 crore IPO to grow 20+ centers in tier-I and tier-II cities. FY24 revenue was INR 300 crore (+50 percent YoY).
Lenskart: The eyewear unicorn, valued at $5 billion, is preparing a INR 3,000 crore IPO to expand 1,500+ stores and enter markets in the U.S. and Europe. FY24 revenue was INR 4,000 crore (+30 percent YoY).
Captain Fresh: The B2B seafood platform, valued at $500 million, targets a INR 1,200 crore IPO to scale its supply chain across 100+ cities. FY24 revenue was INR 800 crore (+60 percent YoY).
ArisInfra: With SEBI approval, the construction tech firm aims for a INR 600 crore IPO to digitize supply chains for 5,000+ projects. FY24 revenue was INR 400 crore (+45 percent YoY).
This diverse pipeline, monitored by Inc42 and Moneycontrol, includes SEBI-approved filings for Smartworks and DRHPs in progress for LG India, contributing to a total IPO value of $23 billion.
Financial Easing: Catalyzing the IPO Surge
The Reserve Bank of India's October 2025 reforms are a significant catalyst for this IPO boom, creating a favorable environment for capital access and growth:
Acquisition Financing: Banks can now fund corporate acquisitions with higher share-backed lending limits, enabling startups like Belstar to pursue mergers and acquisitions, potentially increasing AUM by 10 to 15 percent.
NBFC Lending Support: Reduced borrowing costs for non-banking financial companies (NBFCs) funding infrastructure projects, by 50 to 100 basis points, benefit firms like Eldeco, freeing up INR 100 crore annually for expansion.
IPO Financing Reforms: Lifting 2016 restrictions on large borrowers and allowing IPO-backed loans reduce compliance costs by 20 percent, facilitating capex for companies like Rebel Foods.
Urban Co-operative Banks: RBI's proposed licensing framework could unlock INR 1,000 crore in microfinance lending, supporting Belstar's rural outreach to an additional 500,000 clients.
Digital Payments Growth: With over 2 billion monthly UPI transactions and a 30 percent year-over-year value increase, fintechs like Groww and Pine Labs see revenue boosts of 15 to 20 percent.
Coupled with a stable 6.5 percent repo rate and 4.5 percent inflation, these reforms enhance the impact of IPO proceeds, enabling startups to fund expansion and reduce debt efficiently.
RBI Governor, emphasized: "Our policies foster a balance of growth and stability, empowering startups to access capital and scale effectively."
Market Drivers: The Forces Behind the Boom
Several factors are fueling this IPO surge:
Robust Retail Participation: Over 50 million demat accounts and 70 percent oversubscription rates (10x+ for 2024 IPOs) reflect strong investor enthusiasm, with household equity investments rising 25 percent since 2022.
Rationalized Valuations: After the 2021 valuation bubble, startups now target 3 to 5 times revenue multiples, aligning with global peers like Zomato, which trades at three times FY25 sales.
Foreign Direct Investment (FDI): INR 2 lakh crore in FDI inflows in 2024, including QIA's investment in Rebel Foods, underscores global confidence in India's 7 percent GDP growth and 1.4 billion consumer base.
Policy Support: SEBI's 90-day approval mandate and RERA 2.0 reduce filing delays by 30 percent, while PM Awas Yojana 2.0's INR 5,000 crore allocation supports real estate firms like Eldeco.
Focus on Profitability: Investors prioritize firms with return on equity (RoE) above 15 percent and debt-to-equity ratios below 1x, prompting companies like Zepto to reduce FY24 losses by 50 percent.
Risks and Challenges
Despite the optimism, significant risks remain:
Market Performance: Only 7 of 23 startup IPOs since 2022 trade above their listing prices, with Ola Electric down 40 percent due to overvaluation concerns.
Sector-Specific Risks: Belstar faces a 20 percent NPA risk in microfinance, Rebel contends with 15 percent customer churn in foodtech, and Eldeco navigates a 10 percent inventory surplus in tier-II cities.
Global Volatility: Potential U.S. interest rate hikes or trade tensions with China could increase market volatility, affecting IPO pricing and investor sentiment.
Regulatory Scrutiny: SEBI's enhanced environmental, social, and governance (ESG) disclosures and 12-month lock-in periods delay 20 percent of filings, requiring robust compliance frameworks.
Investors are advised to focus on companies with strong fundamentals, including RoE above 15 percent, debt-to-equity below 1x, and positive cash flows to mitigate risks.
Economic Impact: Shaping India's FutureThe 2025 IPO pipeline is a transformative force for India's economy, with far-reaching implications:
Job Creation: Raising INR 55,000 crore, these IPOs could generate over 10 million jobs, particularly in fintech, logistics, and real estate sectors.
Capital Market Growth: Increased retail participation is deepening India's equity culture, with demat accounts projected to reach 60 million by 2026, enhancing market liquidity.
Global Competitiveness: Companies like Ather Energy and Lenskart are boosting India's export potential in EVs and consumer goods, targeting $50 billion in exports by 2030.
ESG Alignment: Startups like Belstar, with women-focused lending, align with UN Sustainable Development Goals, attracting over $500 million in annual ESG investments.
Executive Director, SEBI stated: "India's IPO pipeline showcases a mature ecosystem driving economic growth with transparency and scalability."
A Defining Moment for India's Startups
The 2025 startup IPO boom marks a pivotal chapter in India's entrepreneurial journey, transitioning from venture capital-driven growth to public-market accountability. With Belstar Microfinance advancing financial inclusion, Rebel Foods redefining global foodtech, and Eldeco Infrastructure shaping urban landscapes, the pipeline embodies diversity, resilience, and ambition. Supported by RBI's financial reforms, robust retail demand, and global investor confidence, these 23 startups are set to redefine India's economic narrative. However, success hinges on disciplined execution, sustainable models, and navigating sector-specific risks. As India leverages its 7 percent GDP growth and 1.4 billion-strong market, this IPO wave could create wealth, jobs, and global champions, cementing its status as a startup superpower.
[Major General Dr. Dilawar Singh, IAV, is a distinguished strategist having held senior positions in technology, defence, and corporate governance. He serves on global boards and advises on leadership, emerging technologies, and strategic affairs, with a focus on aligning India's interests in the evolving global technological order.]
