India's listed startups raise over $5 billion from public markets in FY25
Public markets outpaced private capital for late-stage fundraising, solidifying their role as the dominant source of growth capital, according to Rainmaker Group's 'RainGauge Index FY25 Annual Report'.
FY25 also marked the first full market cycle for India's startup listings after a euphoric period for IPOs in 2021–22, sharp corrections in 2023, and rationalisation in 2024.
"All of this unfolded with a backdrop of a cyclical economic slowdown in India in FY25, causing a lot of consumer-facing companies to battle margin compression and weak topline momentum, the report said.
The fiscal year also saw a secondary exit of over Rs 20,000 crore as private equity/venture capital (PE/VCs) harvested early bets through block deals.
'FY25 didn't just test India's startup listings, it matured them,' said Kashyap Chanchani, Managing Partner, The Rainmaker Group.
The public market has become the preferred playground for India's breakout companies. We've now seen the full arc - the IPO frenzy, the valuation winter, and now a clear re-rating driven by fundamentals, Chanchani said.
The financial year also saw some symbolic structural changes.
Meanwhile, mutual fund participation surged, with average holdings in RainGauge Index companies, a pool of listed startups prepared by Rainmaker Group, rose from 10 per cent in March 2024 to 14 per cent in March 2025, the report said.
Despite the early correction and record FII outflows of over Rs 78,000 crore in the first quarter of FY25, foreign investors returned strongly by Q4, driven by rate-cut expectations and India's steady macro indicators, the report stated.
The Rainmaker Group is one of India's investment banks focused exclusively on the private markets.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
20 minutes ago
- Mint
TCS layoff: Should TCS investors be concerned as company plans to hand pink slips to 12,000 employees? Explained
TCS layoff: A trend majorly seen in large global IT tech giants like Meta, Google and Microsoft, has spread to India too, as domestic IT bellwether Tata Consultancy Services (TCS) has announced plans to hand pink slips to almost 2% of the workforce. TCS layoff, expected to impact 12,261 employees, will largely target those belonging to middle and senior grades. In response to the news, not only just TCS share price tumbled, but its ripple effects were seen on other IT companies as well. Wipro, HCL Technologies and Infosys too felt the impact, declining up to 2% — sending the Nifty IT pack down over 1%. The IT stocks have been out of favour for some time now, given global macro uncertainty and geopolitical tensions are weighing on global tech demand and delaying client decision-making. Analysts believe that TCS layoffs signal deep organisational changes driven by artificial intelligence (AI) and slow global demand rather than a short-term cost cut. "TCS' decision to layoff ~12,200 employees, which is ~2% of its global workforce during FY26 is reflation of both cost optimisation measures and deeper industry challenges. Shifting technology demands can be also a major reason for the layoff," said Rajesh Sinha, Sr. Research Analyst at Bonanza. While TCS has insisted that the layoffs are not primarily AI-driven job cuts or immediate cost-cutting, Sinha said it is an indication that there is significant pressure to stay competitive amid tighter client budgets, demand softness and rising price pressures requiring efficiency improvements. "Growing requirement of automation and evolving client expectations are reshaping workforce structures, forcing companies like TCS to rebalance employee costs and skill sets to maintain margins and becoming "future-ready" through skill re-alignment," said Sinha. During the June quarter of the ongoing fiscal, Indian IT companies have delivered single-digit revenue growth. TCS' consolidated sales in the first quarter rose 1.3% to ₹ 63437 crore, missing analysts' average estimate of ₹ 64666 crore, according to data compiled by LSEG. TCS's revenue in four out of its six verticals fell compared to the same period last year, while banking and financial services' revenue grew 1% and tech services rose 1.8%, according to a Reuters report. Its total order bookings stood at $9.4 billion during the quarter, versus $12.2 billion in the previous quarter and $8.3 billion in the year-ago period. Meanwhile, TCS MD and Chief Executive K Krithivasan recently said the company is experiencing a "demand contraction" due to the continued uncertainties on the macroeconomic and geopolitical fronts, and added that he does not see a double-digit revenue growth in FY26. Harshal Dasani, Business Head, INVasset PMS, is not as concerned about the TCS layoff and sees it as a strategic move and less of a red flag. With a workforce of over 6 lakh, TCS has already slowed hiring considerably in the last year, reflecting shifting demand patterns in its key markets. "This move signals a broader shift in Indian IT — away from headcount-led growth toward efficiency and AI-led delivery models. Rather than signalling stress, this recalibration positions TCS to navigate a lower-growth environment while staying operationally agile," opined Dasani. Given that TCS is the trend setter for the industry, analysts believe that other IT companies could follow suit. Dasani said that performance and profitability will now take precedence over headcount growth now. "It challenges the long-standing perception that Indian IT offers unconditional job security, and it underscores that operating leverage, not just revenue growth, will define sectoral winners in this cycle. Other firms may follow suit, especially as pricing pressure and AI-led delivery transformation gather pace," he added. Sinha also believes that the TCS layoff is expected to increase fears of job insecurity not only in TCS but also across other IT companies, highlighting long-term career stability in IT industry. It also reflects industry challenges like less tolerance for bench time, strict billable day requirements, and increased automation, he opined. According to Sinha, as far as investors are concerned, this challenging sector-wide environment will create pressure on the stock price of major IT companies, including TCS, for a shorter time horizon. However, in the longer term, the implicit growth opportunity of the company will determine prospects of the company. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Standard
20 minutes ago
- Business Standard
Intel and Times of India Launch 'The Learning Curve' to Bridge Digital Trust Gap in Education
NewsVoir New Delhi [India], July 28: Intel, in partnership with The Times of India, today announced the launch of The Learning Curve, a landmark campaign focused on reshaping how Indian parents and educators view the role of technology--particularly PCs and AI--in school education. With over 248 million school students across the country (Economic Survey 2024-25) and persistent gaps in digital infrastructure, this initiative takes on the urgent task of rebuilding trust in technology as an enabler of responsible, personalized learning. The campaign draws attention to stark disparities in India's educational ecosystem: only 57.2% of schools have functional computers (UDISE Plus, 2023-24), and a mere 53.9% (UDISE Plus, 2023-24) have internet access. Yet, the pressure on students to succeed academically continues to rise. The Learning Curve leverages real stories, expert insights, and survey data from over 100,000 Indian parents and educators to tackle common fears around screen time, distraction, misinformation, and the perceived replacement of teachers by machines. The campaign takes root in a significant mindset gap: while many parents acknowledge the benefits of technology, 55% still view AI as potentially risky or harmful to critical thinking. Nearly one in three cite academic stress as a top concern, while 43% are actively seeking expert guidance on how to use technology effectively for their children's education. To address these concerns, The Learning Curve is built around three core pillars: * Empowerment Through Education: Positioning the PC as a personalized tutor and productivity partner in a child's learning journey--from discovery to mastery. * Ethical, Safe Technology Use: Advocating for Intel-powered PCs with parental controls, privacy safeguards, and secure learning environments. * Cultural Relevance & Local Stories: Featuring parenting voices across India, from celebrities like Soha Ali Khan and Kranti Redkar to regional teachers transforming classrooms with tech. One of the defining features of The Learning Curve is its emotionally grounded storytelling. The campaign features well-known parenting voices such as Soha Ali Khan, Kranti Redkar, and Prithi Ashwin, who reflect on their own children's evolving learning journeys. From watching their kids engage with interactive educational content to navigating questions around screen time and online safety, these mothers bring authenticity and vulnerability to the conversation. Their stories strike a chord with Indian parents--balancing curiosity with caution, and change with care. In fact, a striking 66% of parents surveyed believe technology can be a powerful educational ally--if guided well. This highlights that the barrier isn't belief in tech itself, but a lack of clarity and trusted direction. The Learning Curve aims to bridge this gap with credible voices and real-world stories that show what responsible, effective tech use can actually look like. These stories will include voices from the education frontlines, such as Ranjitsinh Disale, the Global Teacher Prize 2020 winner known for transforming rural classrooms through innovative, tech-enabled teaching methods. Disale, who famously introduced QR-coded textbooks in a government school in Maharashtra, lends his expertise to advocate for meaningful tech integration in classrooms. His participation underscores the campaign's belief that the right tools--used mindfully--can democratize learning, boost accessibility, and empower both teachers and students to achieve more. Aligned with national policy frameworks such as the National Education Policy (NEP 2020) and global calls for digital inclusion, The Learning Curve complements India's push toward future-ready education. With the AI-in-education market expected to grow at around 40% CAGR in Asia-Pacific, Intel is investing in campaigns that not only address access but also perception and trust. From expert-led videos to myth-busting explainers and regional-language guides, The Learning Curve offers a dynamic mix of content in English, Hindi, Marathi, and Tamil--crafted to challenge assumptions and spark fresh thinking about tech in education. Now streaming across TOI's digital platforms and social channels, these stories and insights invite audiences to explore how AI-powered PCs are quietly transforming learning across India. Dive into the conversation at Santhosh Viswanathan, Managing Director of Intel India, emphasizes the urgent need for both infrastructural and attitudinal change in education: "Technology is now the bedrock of education. It's democratising access to learning, enabling personalised experiences, and connecting students and educators like never before. At Intel, we align with UNESCO's view that digital technologies are evolving into integrated networks, forming the infrastructure of modern truly harness this power, we must prioritise areas like digital infrastructure, AI-based learning tools, and intelligent tutoring systems. However, we also need a critical mindset shift. Computers are still seen as distractions, and rote learning is deeply ingrained. With only 57% of Indian schools equipped with functional computers and 53% with internet access (as per the UDISE report), this gap must be urgently addressed." Intel's long-standing commitment to inclusive innovation and ecosystem development continues to drive its work in India. Through collaboration with local partners and institutions, the brand aims to build the infrastructure, awareness, and capabilities needed to make every child's learning journey truly limitless. Intel's vision for education in India is rooted in the belief that technology, when thoughtfully deployed, can be a powerful equalizer. With only about half of the schools having functional computers, Intel is committed to bridging this digital divide while transforming mindsets around tech-enabled learning. The company envisions a future where every child has access to an AI-powered PC--serving not as a distraction, but as a personalized tutor and productivity partner. By fostering digital literacy, enhancing infrastructure, and championing safe, responsible use of technology, Intel aims to unlock every student's potential and equip them with the skills needed to thrive in the AI age.
Time of India
20 minutes ago
- Time of India
TCS to layoff 12,000 employees: What we know so far about the mass cull
Synopsis Tata Consultancy Services is set to lay off approximately 12,000 employees, representing 2% of its global workforce, over the next three quarters of FY26. This decision follows concerns about salary hikes and a new benching policy. Here's what we know so far about the first massive job cut by an Indian company this year.
