India’s tech startup IPO journey has been nothing short of transformative since Zomato’s historic listing in 2021. In just a few years, 25 tech-driven startups have entered the stock market, raising billions and sparking investor enthusiasm. Together, they have delivered an average gain of 42%, yet this surge has been marked by both spectacular successes and disappointing declines.

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Zomato’s listing became the face of India’s digital economy entering the mainstream market. The food delivery giant’s debut inspired other prominent startups like Paytm, Nykaa, Delhivery, and Policybazaar to follow suit. The euphoria was immense, but so was the risk. While some companies rewarded investors handsomely, others faltered as their sky-high valuations faced real-world market tests.

Out of the 25 listed startups, four emerged as multibaggers, showcasing how sound fundamentals and discipline can deliver sustainable growth. Companies such as MapmyIndia, Tata Technologies, and ideaForge gained investor trust through strong financial performance and realistic valuations. However, eight startups saw their stock prices sink below listing levels, reflecting the consequences of inflated expectations and limited profitability. The market, once driven by enthusiasm, began to demand clear earnings visibility and consistent performance.

A defining feature of this IPO wave has been the valuation debate. How much premium should investors pay for future growth? Startups like Paytm exemplified this dilemma, as their post-listing crash highlighted the dangers of overvaluation and unclear profitability paths. Others like CarTrade and Nazara Technologies faced similar challenges. Over time, investors began shifting focus from growth-at-all-costs to profitability and operational stability, signaling a more mature approach toward tech investments.

As the buzz around Lenskart’s potential IPO grows, all eyes are on how the eyewear giant will perform on Dalal Street. Backed by global investors such as SoftBank and Temasek, Lenskart stands apart for its proven profitability and scalable business model. If it lists successfully, it could mark a turning point for India’s consumer-tech IPOs — demonstrating that profitability and innovation can indeed coexist.

The early IPO frenzy was driven largely by FOMO (fear of missing out), as retail investors rushed to capture the next unicorn. But after multiple market corrections, investors have become more discerning. Institutional players now prioritize companies with transparent governance, sustainable cash flows, and a clear path to profitability. The era of speculative investing is slowly giving way to one rooted in fundamentals and long-term strategy.

The first wave of startup IPOs has taught the market valuable lessons. As India’s digital economy continues to expand, upcoming listings from Swiggy, Ola Electric, and PhonePe will test whether this new maturity in valuation and expectations can hold. The debate around startup pricing and performance may continue indefinitely, but India’s evolution into a tech-driven public market is here to stay. Each IPO — whether a hit or a miss — adds a new dimension to the nation’s dynamic financial narrative.