Are India's Start-Ups Igniting Public Markets Despite Valuation Worries?

India's start-up listing rush is gaining momentum, with a notable debut this week from Lenskart, a tech start-up valued at over $1 billion. The eyewear firm's $821 million (£623 million) offering sold out rapidly, indicating strong investor interest. Additionally, two more unicorns, Groww and Pine Labs, are set to join the stock market, highlighting a vibrant environment for Indian start-ups despite concerns over high valuations.

Last updated: 04 November 2025 (BST)

What’s happening now

The Indian stock market is witnessing a flurry of activity from start-ups, with Lenskart's significant IPO showcasing the sector's resilience. Despite a challenging funding environment in previous years, the appetite for these listings suggests a recovering and maturing ecosystem. The excitement surrounding upcoming IPOs from Groww and Pine Labs further exemplifies this trend, as investors are keen to participate in the growth story of India's tech sector.

Key takeaways

Lenskart's IPO raised $821 million (£623 million) and sold out within hours.
Groww's IPO saw investor demand 17 times greater than available shares.
In 2025, 43 start-up IPOs have taken place, reflecting a significant increase from previous years.
Concerns remain about the sustainability of high valuations among new investors.
Fewer start-ups are shutting down, indicating a shift towards sustainability and profitability.

Timeline: how we got here

India's start-up ecosystem has seen remarkable changes over the past few years, particularly in IPO activity. Below is a brief timeline highlighting key milestones:

2020: Only a handful of start-ups went public amid a nascent stock market appetite.
2021: The peak year for start-up funding, with $40 billion raised, spurring interest in IPOs.
2024: Over 3,900 start-ups ceased operations, signalling a challenging funding winter.
2025: A resurgence in IPOs with 43 listings so far, indicating a recovery in the market.
November 2025: Lenskart's IPO marks a significant moment in the ongoing listing rush.

What’s new vs what’s known

New today/this week

Lenskart's IPO this week has drawn considerable attention, particularly given its rapid sell-out and the subsequent market debut that initially faced volatility. Additionally, the upcoming IPOs from Groww and Pine Labs show that the demand for tech start-ups remains robust.

What was already established

Prior to this week, the Indian start-up ecosystem had been experiencing a wave of IPOs, with many firms capitalising on the renewed investor interest following a lengthy period of funding struggles. Experts had noted a shift towards sustainability and profitability among start-ups as a response to the previous funding winter.

Impact for the UK

Consumers and households

The surge in Indian start-up IPOs may have indirect effects on UK consumers and households, particularly those interested in international investments. As more Indian companies enter global markets, UK investors might find new opportunities to diversify their portfolios.

Businesses and jobs

For UK businesses, the growing success of Indian start-ups may lead to increased collaboration and partnerships, particularly in tech sectors. The robust IPO activity can stimulate job creation as these companies expand their operations both locally and internationally.

Policy and regulation

In the UK, the success of Indian start-ups could encourage policymakers to consider regulatory reforms that facilitate easier access to public markets for emerging companies. Observing how India manages its start-up ecosystem could provide valuable insights for the UK’s own tech landscape.

Numbers that matter

$821 million (£623 million): Amount raised by Lenskart in its IPO.
43: Number of start-up IPOs in 2025 so far, up from 8 in 2020.
5 times: Increase in IPOs compared to 2020.
17 times: Demand for Groww's shares compared to availability.
81%: Decrease in the number of start-ups shutting down in 2025 compared to 2024.

Definitions and jargon buster

Unicorn: A start-up valued at over $1 billion.
IPO: Initial Public Offering, the process by which a private company offers shares to the public for the first time.
Valuation: The process of determining the current worth of a company or asset based on market factors.

How to think about the next steps

Near term (0–4 weeks)

Investors should monitor upcoming IPOs, particularly from companies like Groww and Pine Labs, to gauge market sentiment and trends. These listings could provide insights into valuation dynamics and investor appetite.

Medium term (1–6 months)

As more start-ups enter the public market, analysts should assess the sustainability of their valuations. Observing how established firms perform post-IPO will be crucial for understanding long-term trends in India’s start-up ecosystem.

Signals to watch

Market performance of Lenskart and subsequent IPOs.
Changes in investor sentiment towards tech start-ups.
Regulatory developments affecting public offerings in India.

Practical guidance

Do

Research the financial health and fundamentals of companies before investing in IPOs.
Diversify your investments to mitigate risk.
Stay informed about market trends and regulatory changes.

Don’t

Invest solely based on hype or media coverage of an IPO.
Neglect the importance of due diligence in evaluating investment opportunities.
Overcommit funds to a single investment, especially in volatile markets.

Checklist

Assess the company's market position and growth potential.
Review the IPO pricing and compare it against similar companies.
Consider the company's governance and management track record.
Evaluate the overall economic environment and its impact on the sector.
Understand the potential risks associated with investing in new IPOs.

Risks, caveats, and uncertainties

While the recent IPO activity has been promising, investors should be cautious of the high valuations associated with many start-ups. The market is still adjusting after a period of significant fluctuations, and the sustainability of these valuations remains uncertain. Potential changes in regulatory policies could also affect future IPOs and investor sentiment.

Bottom line

The current momentum of India's start-up IPOs reflects a maturing ecosystem, with companies increasingly focused on profitability and governance. As Lenskart and others make their market debut, both investors and founders must navigate the complexities of high valuations and market expectations. The next few months will be critical in determining whether this trend signals a sustainable shift in the Indian tech landscape.

FAQs

What is a unicorn in the context of start-ups?

A unicorn is a term used to describe a privately held start-up company valued at over $1 billion, signifying its rapid growth and potential in the market.

What factors contribute to the high demand for start-up IPOs in India?

The high demand for start-up IPOs in India can be attributed to better regulation, a diverse range of investors, and a growing appetite for high-growth companies among both institutional and retail investors.

How are recent IPOs impacting early investors in Indian start-ups?

Recent IPOs have allowed early investors to cash out on their investments, providing them with substantial returns. However, new investors may face challenges in achieving similar profits due to high initial valuations.