Whalesbook
India's tech sector is on the cusp of a significant IPO boom, with projections indicating that 2026 could be a landmark year for startup listings. Following a challenging period of market correction and a 'hard reset' after the 2021 peak, the path is clearing for liquidity events, potentially ushering in the largest wave of public market debuts for Indian startups.
The 2026 IPO Pipeline
Over the next 18 months, more than 48 Indian startups are expected to tap public markets. The pipeline is diverse, spanning fintech, e-commerce, enterprise tech, logistics, and deeptech. Prominent names reportedly preparing for IPOs include Zepto, InMobi, PhonePe, OYO, B2B giants Infra Market and Zetwerk, and potentially Razorpay. These are leaders in their respective domains, making the 2026 cohort uniquely significant.
Collectively, these upcoming listings could surpass 2025's tally of 18 mainboard IPOs. Initial estimates suggest key players like Flipkart, Zepto, OYO, InMobi, Fractal, and Zetwerk alone could raise upwards of INR 50,000 crore. The broader pipeline sees over 190 companies with SEBI approval or draft filings, targeting a combined INR 2.5 to 2.65 lakh crore. Approximately INR 1.25 lakh crore in IPOs have already secured SEBI approval, awaiting final timing from issuers and bankers.
Shifting Investor Focus
A fundamental shift is evident in investor sentiment. Data indicates that 48% of investors now prioritize stronger startup fundamentals, profitability, and reduced cash burn as key drivers for backing tech IPOs. This contrasts sharply with the pre-2022 era, where growth narratives and future potential often trumped demonstrated performance. The public market now demands proof of sustainable business models.
Domestic institutional and retail capital are playing an increasingly vital role, bolstering liquidity and lessening reliance on global risk sentiment. This suggests a more discerning market, with clearer filters for quality. However, concerns persist regarding valuation mismatches. Some market observers note that many IPOs are priced significantly higher than comparable listed peers, yet still achieve strong subscriptions. This has led to a surge in IPO activity, with a growing proportion of offerings skewed towards secondary sales (Offer for Sale - OFS) rather than fresh capital raising.
Market Dynamics and Lessons from 2025
Recent performance of listed companies provides cautionary tales. While 2025 saw record fundraising, with over 100 mainboard IPOs raising approximately INR 1.75-1.76 lakh crore, nearly half of these are now trading below their issue price. A notable portion of large 2025 deals heavily featured OFS components, meaning existing shareholders cashed out rather than the company raising funds for growth. OFS accounted for roughly 63% of the INR 1.54 lakh crore raised in IPOs last year, indicating many listings served primarily as liquidity events.
Retail participation is also evolving. Average retail applications and oversubscription rates have moderated from previous years. Investors are no longer chasing hype indiscriminately, increasingly evaluating pricing, fundamentals, and long-term potential. Foreign institutional investors (FIIs) have shown caution, but domestic institutional capital, including mutual funds, is proving to be a stabilizing force, now accounting for over half of anchor allocations.
360° Investment Research Note
Bullish Perspective: The sheer volume and quality of companies in the 2026 IPO pipeline, coupled with the increasing strength and long-term focus of domestic institutional investors, create a potent mix for a successful market. Companies with proven unit economics and clear paths to profitability will likely command strong valuations and deliver post-listing gains. The recalibration post-2022 means stronger businesses are emerging.
Bearish Perspective: Valuation disconnects remain a significant risk. If promoters and early-stage investors continue to push for stretched valuations, particularly through high OFS, retail investors could face further post-listing disappointment. A cooling of domestic liquidity or a broader market downturn could expose these pricing excesses. The reliance on OFS diminishes the direct benefit to company growth.
Skeptical Perspective: While the pipeline is large, execution risk is substantial. Regulatory hurdles, global economic shifts, and the ability of these new-age companies to truly achieve profitability and scale without continuous funding rounds remain unanswered questions. The 'hard reset' may not have been enough to purge all speculative excesses.
Data-Driven Analysis: The moderation in retail subscription rates (down from 34.15x in 2024 to 26.42x in 2025 on average) and the decline in oversubscribed IPOs suggest a maturing investor base. The high OFS percentage (63% in 2025) in large IPOs is a direct indicator of liquidity events over capital infusion, correlating with weaker post-listing performance. Conversely, the dominance of domestic institutional investors in anchor allocations provides a crucial, stable floor.