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.
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