Breaking Records! Indian Startups Propel IPO Market in 2024

India's IPO landscape is buzzing with excitement as new-age tech startups make a decisive push toward public listings in 2024. After years of muted activity because of challenging economic conditions, the startup ecosystem is now riding a wave of optimism, profitability, and investor interest. Let's dive into what's fueling this IPO spring and what it means for India's booming startup culture.

A Breakout Year for Indian Start-Ups

In the past year, namely 2024, 12 tech-driven start-ups have already debuted on Indian stock exchanges; among these big names include Swiggy, Ola Electric, FirstCry, Go Digit General Insurance, and Unicommerce. In contrast, five went public in 2023, and only three in 2022. Clearly, the tide has turned.

What is interesting is not merely the count of listings but their successful story. Companies like Awfis, TBO Tek, and ixigo not only listed at a premium but also showed strong post-listing rallies. This validates the increasing appetite for tech IPOs from institutional and retail investors.

What's Driving This IPO Surge?

Several factors have led to the revival of IPOs in the Indian startup ecosystem:

Thawing of the Funding Winter: With the funding landscape getting better, startups are finding it easier to position themselves for public markets.

Profitability Focus: Companies with strong fundamentals, sustainable growth models, and clear paths to profitability will find investors throwing in good money.

Investor Diversification: NIIs and QIBs are going to seek tech stocks with high potential to diversify their portfolios.

Positive Sentiment in Markets: Liquidation and proper corporate governance have driven the popularity of IPOs as a source of fund-raising.

According to an angel investor, "Startups today are mature, with proven revenue models, and ready to meet the rigorous demands of public markets. Investor confidence behind them is a testimony to their growth potential."

Challenges on the Way of IPO

The IPO scene may be good but it still poses some challenges. Loss-making entities are abhorred by investors, and startups must have unit economics in place and must be profitable for their future trajectory. Also, market participants will not compromise on regulatory compliance and corporate governance.

Quite surprisingly, one of the coworking startups, Awfis, stunned the markets by posting a profitable quarter soon after its listing and set a benchmark for those who are eagerly waiting to go for IPOs.

IPOs to Watch

It is only the beginning of the year, and the pipeline is full of action. Big names such as Ecom Express, Smartworks, and Zappfresh will make their market debut soon. In the B2B space, ArisInfra will open its INR 580 Cr public issue after getting SEBI approval.

Meanwhile, well-thought-out robust financials have already been sold to five top-tier investment banks, including Morgan Stanley and Bank of America, the $1 billion IPO process of unicorn OfBusiness.

A Boon for Indian Startup Ecosystem

IPO activity, which has been rising sharply, indicates maturity in India's startup ecosystem. What was an overnight reaction to a funding crunch has turned into a movement underpinned by resilience, adaptability, and sustainable growth. According to Kushal Bhagia of All In Capital, a VC firm, "Public markets are hungry for tech stocks and welcoming strong companies with open arms. This is an exciting time for the ecosystem.

Startups That Have Listed In 2024

Awfis IPO

The brainchild of Amit Ramani in 2015, Awfis has revolutionized India's workspace solutions. Born a coworking company, it is now a technology-enabled platform that caters to startups as well as global giants. Their IPO in May 2024 led them to be listed at INR 432.25 on the BSE and INR 435 on the NSE with both listing at a premium.

The most telling attribute for Awfis is its financial turnaround of INR 2.7 Cr net profit for Q1 FY25, compared to an INR 8.3 Cr loss last fiscal. Operating revenue grew 37.2% YoY at INR 257.7 Cr and is reflective of the constant upward trajectory plus a profitability focus.

Indeed, such success bodes well with the increasing demand for flexible workspaces as well as investor confidence in sustainable, technology-enabled ventures. Strong fundamentals coupled with innovative edge are redefining the future of workspaces with Awfis.

BlackBuck IPO

Founded by Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam in 2015, BlackBuck is India's largest online trucking marketplace that connects suppliers and truckers for inter-city full truckload transportation. Flipkart, Tiger Global, and Goldman Sachs, among other investors, have supported the company along the way as it has taken the step of offering an IPO.

The logistics unicorn had filed for an IPO in July 2024. It raised fresh shares worth INR 550 Cr and an OFS of 2.16 Cr shares, for which SEBI accorded its approval in October 2024. Before its IPO, BlackBuck raised INR 501 Cr from anchor investors at INR 273 per share, valuing the company at INR 4,800 Cr, far below its peak valuation at the beginning of 2021 of INR 7,100 Cr.

Although its market debut was modest, listing at a 2.2% premium on the BSE (INR 279.05), shares closed 4.7% down to INR 260.20. Still, the company's market cap was at INR 4,591.98 Cr by the end of the first trading day.

The company had an excellent recovery on the financial front as BlackBuck declared a net profit of INR 28.67 Cr for Q1 FY25 from having incurred a net loss of INR 35.93 Cr in Q1 FY24. The revenues from operations went up by 55% YoY to reach INR 92.16 Cr.

BlackBuck's IPO represents the growth of resilience in any business and increasing interest in such technology-driven logistics solutions.

FirstCry IPO

Established in 2010, FirstCry has emerged as India's favorite marketplace of the omnichannel, providing mother and child requirements. It deals with diapers to toys, daycare services, and preschools, thereby making it a household name across the country.

After addressing SEBI’s directive to refine its DRHP, FirstCry refiled its IPO prospectus in April 2024 and received the green light for public listing in July 2024. The IPO featured a fresh issue of INR 1,666 Cr (reduced from INR 1,816 Cr) and an OFS of 5.4 Cr shares. Ahead of the IPO, it raised INR 1,885.82 Cr from 71 anchor investors at INR 465 per share.

Ahead of listing, FirstCry raised an impressive amount of INR 1,885.82 Cr from 71 anchor investors at INR 465 per share. Its listing was simply spectacular with shares opening at INR 651 at NSE (a 40% premium) and INR 625 at BSE (a 34.4% premium) as the company's reputation was indeed above board and investors believed the same.

On the revenue front, FirstCry clocked Q1 FY25 sales of INR 1,652.07 Cr, a 10% YoY growth, whereas its losses narrowed down by 31% YoY to INR 75.68 Cr, which showed that sustainability was on the cards.

FirstCry: The biggest omnichannel marketplace in India, for parents is going public. FirstCry has indeed made a pivotal move in its journey in sustaining the same momentum as before.

Go Digit General Insurance IPO

Founded in 2016, Go Digit General Insurance is an insurance game-changer offering health, motor, travel, property, and more to all clients. The Bengaluru-based startup has gained incredible traction after its launch in 2016 as it often goes digital-first. It has even gained a brand ambassador and investor, cricket superstar Virat Kohli.

An employee stock appreciation rights scheme had been one of the concerns that led Go Digit to redraw its draft red herring prospectus (DRHP), which it filed with SEBI in March 2024. This IPO, including a fresh issue of INR 1,125 Cr and an offer-for-sale (OFS) of 5.47 Cr equity shares, was yet another stepping stone in this journey.

Go Digit premiered in May 2024 on Dalal Street, trading at INR 286 on the NSE and INR 272 on the BSE—a modest 5.15% premium to its issue price. Putting aside the lukewarm debut, the Q2 FY25 performance was illustrative enough to vouch for the strength of the business model of the company.

The highpoints of Q2 FY25 are:

• PAT: Showed YoY growth of a scintillating 221% to stand at INR 89 Cr as against INR 27.69 Cr last year.
• Gross Written Premium (GWP): Increased 14.2% YoY to INR 2,368.57 Cr from INR 2,073.84 Cr in Q2 FY24

The IPO of Go Digit demonstrates the rising investor appetite for insurtech companies that operate with robust fundamentals and scalable business models. The startup has vowed growth in the insurance sector in the long run since it continues to focus on innovation and customer-centric solutions.

Ixigo IPO

Founded in 2006, ixigo is initially a travel search engine that offers a comparison of flight deals. It will then rebrand as an online comprehensive travel aggregator by FY20 with a full range of services starting with flight booking, train and bus tickets, hotel reservations, and holiday packages.

The parent company, Le Travenues Technology Ltd., has refiled its Draft Red Herring Prospectus in February 2024, incorporating key regulatory feedback received and seeking approval by SEBI in May. The IPO was launched with a fresh issue of INR 120 Cr and an OFS of up to INR 620 Cr. It clearly shows that the investors are very interested.

ixigo had a resounding listing in June 2024:

NSE listing price: INR 138.10 (48.5% premium against the issue price of INR 93)

BSE listing price: INR 135.85. It is a 45.16% premium.

IPO got oversubscribed by 98X, proving its huge demand and market confidence.

Key Highlights of Q2 FY25

PAT was at Rs 13.08 Cr down by 51% YoY; the market dynamic

Revenue touched Rs 206.47 Cr with growth of 26% YoY indicating operational strength amidst market pressure

Success in its IPO becomes a tale of strength in the brand presence of ixigo but equally of the good growth potential in the travel-tech sector. By expanding its offerings and improving user experience, the company will certainly be very strong in India's fast-growing online travel market.

Menhood IPO

Menhood is a D2C brand founded in 2019 by Dushyant Gandotra, Divya Gandotra, and Shivam Bhateja. Menhood offers a wide range of products in men's grooming such as trimmers, intimate perfumes, intimate wash, moisturizers, and a lot more.

The parent firm, Macobs Technologies Limited, had filed its Draft Red Herring Prospectus (DRHP) in January 2024 for an initial public offering. The IPO comprised a fresh issue of 25.95 lakh shares. The IPO had received very high interest from investors and was oversubscribed 157.5 times. This meant that the demand for Menhood's services was quite significant in the market.

Menhood debuted on the NSE Emerge on 24 July 2024 at INR 96 per share, which was a 28 percent premium over the issue price of INR 75.

IPO Highlights:

IPO Size: Fresh issue of 25.95 lakh shares

Subscription: The issue received 157.5 times subscriptions

Listing Price: INR 96 per share, with a 28 percent premium on the issue price

The listing and strong market response position Menhood as a promising player in the fast-growing men's grooming market in India.

Ola IPO

Ola Electric Founded in 2017 by Bhavish Aggarwal, it seems Ola Electric has been playing an important role in the electric vehicle space, especially in the electric two-wheeler segment. The company presently sells five different scooter models and is planning to launch an electric autorickshaw soon.

Ola Electric made a major step toward an initial public offering in December 2023, filing its Draft Red Herring Prospectus with SEBI to raise over INR 5,500 crore. The IPO was split into two components: an equity issue of up to Rs 5,500 crore as fresh issues, and an offer for sale of up to 8.49 crore shares. This was an important step for the electric vehicle maker, getting ready to tap into public markets and fueling growth.

Set a price band of INR 72-76 for its IPO, the company raised INR 2,763 crore from 84 anchor investors, including major institutions such as SBI, HDFC, Nippon Life, Nomura Asset Management, and the Government Pension Fund of Norway, with shares priced at INR 76 each.

Ola Electric's IPO witnessed excellent investor appetite, getting oversubscribed 4.27 times at the end of the bidding period on August 6, 2024. Still, the stock had a relatively subdued listing on the stock exchanges. On listing, shares opened at INR 75.99 at the BSE and at INR 76 on the NSE, which was almost equal to the IPO issue price of INR 76. It reflected a muted market reaction.

In its Q1 FY25, Ola Electric registered a net loss widening by 30% to INR 347 crore from INR 267 crore in the fiscal period. Net loss does not seem to be a deterrent for the company as it has managed to post sales of INR 1,644 crore with a growth of 32% over INR 1,243 crore in FY23. Though there has been good growth in sales, profitability remains one of the challenges.

Swiggy IPO

Swiggy, which had started as a food delivery company in 2014, expanded the business rapidly, adding grocery delivery under Swiggy Instamart to more recently high-value products, including fitness and electronics devices. Bengaluru-based Swiggy made a giant leap in its growth journey by filing for an IPO worth INR 10,414.1 Cr ($1.2 billion) in April 2024.

Swiggy updated its own initial filing and increased the size of the fresh issue from 3,750 Cr to 5,000 Cr while reducing the number of shares up for sale. Approvals from the shareholders were in place before the final red-herring prospectus was filed with SEBI by October.

The IPO of Swiggy, which opened on 6 November and closed on 8 November has witnessed massive demand as bids crossed the number of shares three times at 3.59 times. At a share price of Rs 390, the company managed to garner a hefty sum of INR 5,085 Cr from leading investors like Fidelity, HSBC India, and Invesco India. The shares of Swiggy finally debuted on the stock exchanges with much fanfare, shooting up high; they opened at INR 420 on the NSE and at INR 412 on the BSE, both convincingly above the IPO price of INR 390, thus indicating the immense market confidence the company commands.

In Q1 FY25, Swiggy's losses expanded marginally by 8% to INR 611 Cr; however, revenue from operations picked pace at 35%, growing to INR 3,222 Cr. The resilience of this company and its ability to grow even amidst financial challenges make it well-positioned for the future, wherein it rides on a diverse portfolio, strong brand, and massive growth potential in both food and grocery delivery.

TAC Infosec IPO

TAC Infosec, which is otherwise called TAC Security, is a SaaS-based cybersecurity startup established back in 2016. It specializes in cybersecurity quantification, risk-based vulnerability management, and penetration testing provided for enterprises to mitigate the challenges arising from an increasingly digital world in terms of security posture.

Led by prominent investor Vijay Kedia, TAC Infosec took the growth curve to the next level by filing its DRHP in January 2023 for its IPO on the NSE's SME platform, NSE Emerge. The IPO comprised a fresh issue of 28.29 lakh equity shares, which would enable much-needed capital for further expansion.

When the shares were listed on the NSE Emerge platform in April, they made a notable debut by opening at INR 290, a staggering 173.6% premium over the issue price of INR 106. This kind of listing reflects the market's confidence in the company's potential in the space of cyber security.

TAC Infosec had a good FY24 with net profit surging 23% to INR 6.33 crore as compared to FY23 at INR 5.12 crore. The operating revenue also witnessed a growth of 17% at INR 11.84 crore as compared to INR 10.09 crore last year. It is a good growth that shows the company is doing well with its growing presence in the cybersecurity world. With expertise in keeping businesses safe as well as with a wonderful market debut, TAC Infosec will keep going on to excel within the evolving world of cybersecurity.

TBO Tek IPO 

The B2B travel tech giant, TBO Tek, has been a name to reckon with in the travel industry since its launch in 2006. It offers solutions for travel agents and tour operators where white-label services are provided all the way to hotel and flight booking APIs.

It started its journey with a DRHP filing in November last year and received the approval of SEBI in April, so by May, TBO Tek hit the markets with an impressive debut. In the NSE, shares were listed at INR 1,426, which marked a 55% premium above the issue price of INR 920, and the BSE saw a 50% premium with its shares opening at INR 1,380.

TBO Tek- the true game changer in the travel industry since 2006- empowered travel agents and tour operators through the most innovative tools invented, such as white-label solutions and seamless hotel and flight booking APIs.

After filing its DRHP last November and gaining SEBI's nod in April, TBO made a spectacular market debut in May. The shares launched on the NSE at INR 1,426, or an impressive 55 percent above the issue price of INR 920, and listed on the BSE at INR 1,380, a solid 50% premium.

The company's recent performance has been equally outstanding. In Q1 FY25, TBO Tek witnessed a 29% PAT growth at INR 60.91 Cr compared to INR 47.3 Cr posted in the corresponding quarter last year. On the top line, revenue was up 21%, touching INR 418.5 Cr from INR 344.6 Cr in the previous quarter.

With steady growth and innovative offerings, TBO Tek remains at the forefront of changing the way travel businesses are run.

Trust Fintech IPO

Trust Fintech was established in 1998 by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo. It has positioned itself as a large enterprise tech company and specializes in providing SaaS product offerings and fintech solutions for ERP implementation and offshore IT services, especially in the BFSI (Banking, Financial Services, and Insurance) segment.

Filed its DRHP with NSE Emerge, this year to raise funds through an IPO, and it managed to list on the SME platform in April just two months later; the public issue witnessed an overwhelming demand of 101X to its subscribed base, spurred mainly by retail and non-institutional investors. This, therefore, marks a strong listing for Trust Fintech, listing at INR 143.25 per share, which translates to a 42% premium over the issue price of INR 101.

Fintech's financial performance has been just as scintillating. While reporting the company's financial year 2023-24, the company revealed a jump of a whopping 210% in net profit to INR 12.5 Cr from INR 4 Cr in FY23. The operating revenue of the company jumped by 55.4% and touched INR 35 Cr, as opposed to INR 22.5 Cr in the previous fiscal.

With such vigorous growth and strong market demand, Trust Fintech would seem very well-set for continued success in the fintech space.

Unicommerce IPO

Unicommerce - a SaaS startup that simplifies inventory management for sellers on various online marketplaces; it was founded in 2012 and was acquired by Snapdeal in 2015; its platform integrates with all the major eCommerce platforms in India, providing all-encompassing solutions for managing and optimizing online retail operations.

The startup filed its DRHP in January and, after getting the nod from regulators on July 1, launched its IPO. Different from most IPOs, however, Unicommerce's issue consisted entirely of an offer for sale (OFS) of 2.98 crore shares. The public issue opened on August 6 and closed on August 8, with a whopping 168X subscription that reflected the strong investor interest in the same.

The company made a very impressive market debut on August 13. On the NSE, shares were listed at INR 235, quite a 117.59% premium over the issue price of INR 108. On the BSE, shares debuted at INR 230, a 112.96% premium.

Unicommerce broke out in style on the NSE on August 13, as its shares were listed at the rate of INR 235, which reflects a 117.59% premium on the issue price of INR 108. On the BSE, the stock opened at INR 230, giving a premium of 112.96%.  This is a stellar market debut after giving such an outstanding premium. That reflects the high level of investor confidence in the company.

On the financial performance front, Unicommerce has been in a quite healthy growth trajectory. It has registered a net profit of INR 4.47 Cr for Q1 FY25 versus INR 3.69 Cr in the same quarter last year. Its operating revenue was also up by 13%, at INR 29.30 Cr for Q1 FY25 compared to INR 25.93 Cr for Q2 FY24.

With such a successful IPO and solid growth numbers, Unicommerce is in place to emerge as the flagship player in India's very fast-growing eCommerce SaaS space.

Stay tuned with IPO Ji for all the latest updates, insights, and more tips on upcoming issues. If you are a seasoned investor or a first-timer, we will ensure you never miss an opportunity to grow with India's success story of a startup.