2026 is expected to see a huge influx of modern startup IPOs, with issues totaling Rs 50,000 crore

Crowded IPO pipeline likely in 2026 as new-age firms eye Rs 50,000 crore

India’s new-age IPO pipeline for 2026 is shaping up to be as busy as last year, with companies such as PhonePe, Zepto, Oyo, Boat, Infra.Market and Shadowfax preparing to tap public markets for nearly Rs 50,000 crore through a mix of fresh issues and offers for sale.

Bankers and venture investors, however, cautioned that sustaining last year’s momentum will depend on broader market conditions and investor appetite for loss-making or newly profitable technology businesses, as public market investors grow more selective on valuations, cash flows and post-listing performance.

In 2025, new-age companies raised close to Rs 36,000 crore through IPOs, making it one of the most active years for tech listings. Companies including Ather Energy, Urban Company, Lenskart, Meesho, Groww, PhysicsWallah and Pine Labs went public, providing liquidity to founders, early investors and employees.

“The post-listing performance of new-age companies that listed in 2025 has been reasonably healthy, underscoring solid returns for public investors,” said Ranvir Davda, co-head of investment banking at HSBC India. He added that the sector is increasingly being seen as more mature, with IPO pricing becoming more balanced and aligned with long-term growth expectations.

Selectivity rises

Institutional investors are closely watching upcoming earnings announcements from recently listed companies to gauge sentiment for the next cohort. Market participants also point to macro factors such as the Union Budget, oil prices, clarity on a potential US-India trade deal and the timing of large IPOs like Reliance Jio and SBI Funds, which could absorb a significant share of investor liquidity.

“The market is available, but more selective,” said Gaurav Sood, managing director and head of equity capital markets at Avendus Capital. “Investors have moved from backing total addressable market stories to demanding a clear path to profitability and cashflow visibility.”

This shift has benefited scaled platforms with improving margins, bankers said, with domestic and foreign institutions—along with insurers and pension funds—continuing to anchor IPO books.

Key listings to watch

Quick-commerce startup Zepto filed confidentially in December and is looking to raise up to Rs 11,000 crore, targeting a September-quarter listing. Hospitality firm Oyo, which turned profitable in FY24, made its third confidential filing on December 31, seeking to raise Rs 6,650 crore. Walmart-owned PhonePe is planning an IPO of around Rs 13,000–14,000 crore.

Liquidity for investors and employees

Last year’s IPO wave accelerated exits, with nearly Rs 18,000 crore—more than half of total IPO proceeds—coming from offers for sale by investors, founders and early backers. Venture firms such as Peak XV, SoftBank and Accel unlocked value across multiple portfolio companies, while employee stock option (Esop) pools worth about Rs 8,700 crore became liquid.

With a strong pipeline but rising scrutiny, bankers say 2026 could be another active year for new-age IPOs—provided companies demonstrate durable growth, governance quality and sustained profitability.