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Time of India
28-07-2025
- Business
- Time of India
Swiggy, Zomato lead public market fundraising; Zepto tops private capital charts
BENGALURU: India's venture-backed startups raised over Rs 44,000 crore ($5.3 billion) from public markets in FY25, more than double the late-stage capital they secured from private investors during the same period, according to The Rainmaker Group's RainGauge Index FY25 Annual Update. The data points to a decisive shift in the startup funding lifecycle with IPOs, FPOs and QIPs emerging as the dominant channels for late-stage growth capital. This marks the first time that public market funding has so clearly outpaced private capital for startups at scale. The report also noted that over Rs 20,000 crore worth of secondary exits were realised by PE/VC firms through block and bulk trades, including investors such as Peak XV and TPG. Mutual fund ownership in RainGauge Index companies rose from 10% in March 2024 to 14% in March 2025, underscoring growing institutional participation and liquidity depth in the listed startup ecosystem. The RainGauge Index, which tracks the performance of 39 listed startups, ended FY25 with a 6.3% annual gain, beating the Nifty 50, BSE Midcap and even matching the two-year trajectory of the Nasdaq 100. This came despite a cyclical economic slowdown, real GDP growth falling to 6.5% and FII outflows touching Rs 78,000 crore in Q1 FY25, the highest since the COVID-era selloff. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Brain tumor has left my son feeling miserable; please help! Donate For Health Donate Now Undo The report characterises FY25 as a year of maturing for India's public startup cohort, after a full cycle of euphoric IPOs (2021–22), sharp corrections (2023) and a reset in valuations (2024). Founders now face tighter public-market discipline. Sector-specific guardrails are in place, with forward valuation multiples settling at 58x EV/EBITDA for internet platforms, 29x for B2B SaaS, 22x for consumer brands and 3x P/B for BFSI players. More than half of RainGauge Index constituents ended the year in the red, with the divergence in performance now clearly attributable to fundamentals. Policybazaar and CarTrade were top performers, delivering profitable growth and stock gains of 93% and 133% respectively. In contrast, several consumer-facing firms and quick commerce players remained in high-burn territory, with mounting scrutiny over margins and growth quality. Among key developments, Zomato became the first venture-backed startup to be inducted into the Nifty 50 and Sensex, while Swiggy joined the Nifty Next 50. Nykaa, PB Fintech, Ola Electric, and others were added to the Nifty MidCap150. A dozen other startups including Meesho, Groww, Urban Company, Wakefit and Pine Labs filed for IPOs in FY25, suggesting that the public markets will remain a core part of India's venture-backed funding stack going forward. At the company level, Zomato reported a 59% rise in adjusted revenue and posted Rs 527 crore in FY25 PAT, but faced compression in quick commerce margins. Swiggy widened losses to Rs 3,117 crore despite 117% revenue growth in the segment. Policybazaar posted Rs 353 crore in PAT and doubled its Ebitda, while CarTrade turned in Rs 145 crore in profit driven by the integration of OLX India's auto classifieds business. FirstCry, which listed in August 2024, saw a 43% rise in Ebitda even as offline demand dipped, which its CEO described as a short-term blip. MakeMyTrip and EaseMyTrip both benefited from a surge in travel demand, with gross bookings hitting record highs and international revenue share rising to 25%. TRMG said public markets are no longer just an exit channel for late-stage startups but a discipline that is reshaping how companies prepare for scale. The firm also launched a companion index, RainGauge Private Pulse, to track India's next $100 billion cohort of late-stage private companies that are gearing up for IPO s. 'We've now seen the full arc, the IPO frenzy, the valuation winter and now a clear re-rating driven by fundamentals,' said Kashyap Chanchani, managing partner at TRMG. 'This is the age of seasoning. The market is no longer listening to stories, it's pricing in substance.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hans India
22-07-2025
- Business
- Hans India
Listed startups raise over $5-bn via public markets in FY25
New Delhi: Venture-backed Indian startups raised over Rs 44,000 crore ($5.3 billion) in FY25 from public markets via initial public offerings (IPOs), follow-on public offerings (FPOs), and qualified institutional placements (QIPs), a report said on Monday. 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 Hindu
21-07-2025
- Business
- The Hindu
India's listed startups raised over ₹44,000 crore from public markets in FY25: report
Venture-backed Indian startups raised over ₹44,000 crore ($5.3 billion) in FY25 from public markets via IPOs, FPOs, and QIPs, marking a structural shift in startup fundraising lifecycle in India. According to investment bank Rainmaker Group's RainGauge Index FY25 Annual Update, public markets outpaced private capital for late-stage fundraising, solidifying their role as the dominant source of growth capital. The money raised from public markets was two times more than private late-stage capital. The year also saw a record ₹20,000+ Crore in secondary exits as PE/VC firms like Peak XV and TPG harvested early bets through block and bulk 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. This is the age of seasoning. The market is no longer listening to stories, it's pricing in substance. India's innovation economy has hit a new gear, one where companies with predictable earnings, durable moats, and institutional-grade governance will dominate,' he added. The report also noted that despite the early-year correction and record FII outflows [around ₹78,000 Crore in Q1], foreign investors returned strongly by Q4, driven by rate-cut expectations and India's steady macro indicators. The year witnessed Zomato joining the NIFTY50 and SENSEX, Swiggy entering the NIFTY Next 50, and Nykaa, PB Fintech, Ola Electric inducted into the NIFTY MidCap150. 'With IPOs no longer delivering inflated valuations or easy exits, startups will have to align with public market expectations much earlier in their lifecycle,' said a statement from the company. 'Sector-specific valuation guardrails are firmly in place with two-year forward EV/EBITDA multiples now providing structured lenses across internet, SaaS, BFSI, and consumer brands. Analyst-grade metrics, unit economics, transparency, and sustainable growth stories will need to be baked in from day one. Startups must now build with capital efficiency, narrative credibility, and governance readiness and not just valuation hype,' it further read.
Hans India
21-07-2025
- Business
- Hans India
India's listed startups raise over $5 billion from public markets in FY25
New Delhi: Venture-backed Indian startups raised over Rs 44,000 crore ($5.3 billion) in FY25 from public markets via initial public offerings (IPOs), follow-on public offerings (FPOs), and qualified institutional placements (QIPs), a report said on Monday. 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.
