India’s stock market is poised for a wave of high-profile initial public offerings (IPOs) as more than three dozen tech startups, collectively valued at around $100 billion, prepare to go public by 2027, reported Bloomberg. The anticipated listings signal a revival in the country’s equity markets after a period of sluggish stock sales, according to one of India’s top advisers for tech deals.

According to Bloomberg, leading the pack of companies planning IPOs are Walmart-backed e-commerce giant Flipkart, digital payments firm PhonePe, and hospitality provider Oyo Hotels. These firms are looking to tap into India’s public markets, which ranked as the world’s second-largest for share sales last year before losing momentum.

A report from Indian investment bank The Rainmaker Group suggests that the new wave of IPO hopefuls is in a stronger financial position than their predecessors. Many of the startups that were listed during the 2021-2022 boom struggled post-IPO, with fintech firm Paytm losing roughly 63% of its value and beauty retailer Nykaa slipping 4% since going public.

“The financial health of companies set to list in the next two years is significantly better than those that went public earlier,” said Kashyap Chanchani, managing partner at Rainmaker. He noted that two-thirds of the firms eyeing IPOs are already profitable and have improved transparency, making them more attractive to investors.

IPO market faces challenges amid economic uncertainty

Despite the optimism surrounding upcoming deals, India’s stock market has faced headwinds. The number of share sales in the country dropped 34% in the first quarter of 2025, as broader market volatility dampened investor appetite. After nearly a decade of continuous gains, the benchmark NSE Nifty 50 Index began declining in late 2024 due to slowing economic growth and downward revisions in corporate earnings forecasts.

IPO proceeds, including block sales and share placements, nearly halved to $7.1 billion in the first quarter, putting India behind Hong Kong and Japan. However, dealmakers anticipate a rebound in the coming months, with major offerings on the horizon, including a potential $1.7 billion listing from LG Electronics’ India unit and a $400 million IPO from electric scooter maker Ather Energy.

A resurgence in startup IPOs would provide crucial exit opportunities for major investors such as SoftBank Group Corp. and Prosus NV. SoftBank’s Vision Fund holds stakes in companies like Oyo, eyewear retailer Lenskart, and used-car marketplace CARS24, while Prosus has backed e-commerce firm Meesho and home services platform Urban Company.

These investors, Chanchani said, “are sitting on significant gains in a dozen or so companies,” and many are now looking to public markets for liquidity. However, he cautioned that IPOs must be priced carefully, as retail investors are increasingly wary of inflated valuations.

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While India remains one of the world’s largest startup ecosystems—trailing only the U.S. and China—it has also been plagued by corporate governance concerns, valuation slumps, and unprofitable business models. Several startups have been forced to cut jobs and scale back expansion plans, while others have collapsed entirely.

The struggles of Byju’s, once a darling of India’s edtech boom, serve as a cautionary tale of how investor sentiment can shift dramatically. The company, led by former teacher-turned-entrepreneur Byju Raveendran, saw its fortunes dwindle as governance issues and financial mismanagement eroded confidence.

“One of the key questions investors frequently ask us is—can we trust the founders?” Chanchani said. As India’s startup IPO market prepares for a comeback, the answer to that question may determine the success of its next generation of public companies.