With Urban Company’s successful debut and a new era of investor expectations, tech unicorns like PhonePe, PhysicsWallah, and Groww are preparing for IPOs in a recalibrated, profitability-first market.
A New IPO Cycle Gains Steam
The resounding success of Urban Company’s IPO, which debuted at a 56.3% premium and was subscribed 104 times, has ignited a fresh wave of startup IPO interest in India.
- The listing has instilled confidence across Dalal Street, triggering renewed momentum among consumer-facing tech brands to go public.
- The upcoming IPO slate includes major names such as PhonePe, Groww, PhysicsWallah, Pine Labs, boAt, and Curefoods.
These companies represent a new generation of Indian startups — profitable, brand-driven, and built for public scrutiny.
PhonePe: A Fintech Litmus Test
PhonePe, backed by Walmart, is set to raise INR 12,000 Cr (~$1.5 Bn) through its IPO, reportedly pre-filed with SEBI.
- With a 46% share in the UPI market, PhonePe’s listing will be a watershed moment for Indian fintech.
- Analysts expect it to open the floodgates for more fintech listings, especially after the tepid performance of Paytm.
The market is watching PhonePe’s IPO as a referendum on investor appetite for scaled fintech platforms with clear monetisation and compliance strategies.
PhysicsWallah: Edtech’s Moment of Truth
PhysicsWallah (PW) is planning a INR 3,820 Cr IPO, but faces reputational headwinds linked to faculty disputes and rising dropout rates.
- As the first Indian edtech to go public, PW will be under intense scrutiny, especially in a post-BYJU’S world.
- Its IPO will test whether affordable, scalable education models can retain investor trust.
Groww and the Rise of Consumer Tech
Groww, a well-known investment platform, also has its eyes on the public market.
- It benefits from strong brand recall, growing user base, and macro trends in financial inclusion.
- Like other consumer-facing platforms, it enjoys a key advantage: tangible metrics like user growth, retention, and transaction volume are easily understood by investors.
Investors Want Profits, Not Just Growth
Post-2021, the market narrative has shifted sharply. The earlier mantra of “growth at all costs” has been replaced by a profitability-first playbook.
- In Q1 2025, 60% of IPO-bound companies were profitable, a major leap from prior years.
- Concepts like the Rule of 40 — where revenue growth + profit margin ≥ 40% — are being applied to assess companies more stringently.
“India has a relatively smaller pool of capital… Investors here are far less forgiving. They reward companies that show profitability, not those still burning cash,” said Vineet Arora, MD at NAV Capital.
Valuation Realities & Investor Behavior
While IPO sentiment is improving, companies must now recalibrate their valuations.
- Valuation compression is expected either pre-listing or post-listing, especially for unicorns like PhonePe, Groww, and PW.
- Foreign institutional investors (FIIs) are driving anchor demand, but are selective in the secondary market.
- Meanwhile, domestic institutions are stepping up as stabilising forces against foreign volatility.
Startups are now more likely to price attractively at IPO to gain long-term investor confidence.
The Rise of B2C Appeal
Consumer startups are emerging as favourites for the next IPO wave — and for good reason.
- Retail investors relate more easily to businesses they’ve used or heard of.
- Metrics like CAC, user base, retention, and revenue per user are tangible and trackable.
- Urban Company’s success was driven in part by its massive brand recognition and a clear, understandable business model.
Expect similar traction for PhonePe, Groww, and boAt, which enjoy strong consumer awareness.
Evolving IPO Environment
India’s capital markets have become more startup-friendly due to regulatory changes:
- SEBI reforms like simplified ESOP treatment and relaxed promoter rules have reduced red tape.
- The launch of GST 2.0 has boosted consumer optimism, especially for B2C brands.
Still, macro risks — from elevated interest rates to geopolitical tensions — remain potential spoilers for momentum.
Upcoming IPOs to Watch
Here’s what’s on the radar:
- 📌 PhonePe – INR 12,000 Cr IPO; DRHP pre-filed
- 📌 PhysicsWallah – INR 3,820 Cr public issue
- 📌 Groww, Pine Labs, Curefoods, boAt – Expected filings soon
- 📌 Meesho, Reliance Jio, Tata Capital, Zepto – Tipped to hit markets in 2026
