ipo exits

A joint report by Bain & Company and IVCA indicates that investor exits through IPOs are expected to decline this year due to market volatility, despite a significant increase in 2024. Several companies are delaying public listings or reducing issue sizes amid these uncertain conditions.

Adulthood has rather come early for Ather, which will celebrate its 12th anniversary later this year. And the IPO is not just a growth enabler for the EV maker, it is a critical financial lifeline. But can it reignite the public market’s faith in EVs after Ola Electric’s not-so-encouraging performance on the bourses?

Indian startups like Flipkart, PhonePe, and Groww are increasingly re-domiciling to India, driven by regulatory clarity and deeper capital markets. Amendments to company and FDI rules have streamlined the process, reducing timelines and complexities. While attractive due to potential IPO benefits and investor alignment, reverse flips still demand careful tax and compliance structuring, especially regarding offshore transfers and shareholder agreements.

PE-VC investments in late-stage companies have significantly declined, plummeting by 61% from $23.4 billion in CY2021 to $9 billion in CY2024, reflecting investor caution. This trend continues into the current fiscal year, with investments down to $1.2 billion in Jan-March CY2025. The market recalibration emphasizes profitability and cash flow over hypergrowth, impacting deal values and exit options.

Delhivery is acquiring Ecom Express for ₹1,407 crore in an all-cash deal, marking a significant consolidation in the logistics sector. This move follows challenges faced by Ecom Express, which had to stall its public listing plans and lay off hundreds of employees.

The Tata group aims to raise $1.3 billion for digital ventures BigBasket and Tata 1mg, with $1 billion allocated to BigBasket and $300 million to Tata 1mg. This move is intended to boost their competitiveness in quick commerce and online healthcare. Despite significant investments, the group seeks profitability and growth across its digital platforms.

In a significant acquisition, Delhivery is set to purchase Ecom Express for Rs 1,407 crore, consolidating its position in the logistics sector. Ecom Express has faced financial challenges and halted its IPO plans. The acquisition is pending approval from the Competition Commission of India and will see Ecom Express operate as a Delhivery subsidiary.

Prime Venture Partners has launched a $100 million venture capital fund to invest in early-stage Indian startups, focusing on fintech, AI/deeptech, global SaaS, and Digital India. More than 80% of the fund's capital commitment comes from global institutional investors, including family offices, university endowments, and fund-of-funds.

Adani Wilmar is acquiring GD Foods, owner of the Tops brand, to enhance its kitchen essentials portfolio. Initially, it will acquire 80% of the company for Rs 603 crore, with the remaining 20% over the next three years. This acquisition will strengthen AWL's offerings, including edible oil, pulses, atta, suji, and soya nuggets under the Fortune brand. It will be funded through internal accruals and IPO proceeds.

Snapdeal co-founder Kunal Bahl urges Indian startups to incorporate locally instead of in foreign jurisdictions. He highlights improved fundraising from Indian VCs, favorable regulatory conditions, and simplified compliance for Indian operations. Bahl emphasizes the practicality and benefits of incorporating in India, dismissing the old belief that foreign incorporation offers better fundraising and exits.

Adding customers, scaling up, managing finances… the challenges are many for startups, but the toughest one is actually getting to an IPO that can give investors the returns they want

Most visionary entrepreneurs don’t dream of making billions of dollars, they think of a world where their products bring change and make a profound impact.

In addition to the nearly Rs 26,500 crore through IPOs on the main board of the stocks exchanges, 2016 also saw Rs 495 crore raised through the SME platform and another Rs 13,000 crore through offer for sales (OFS) by listed entities, data from Prime Database showed.