Startup IPO rush: Rs 18,000 crore worth of fresh issues lined up; Meesho, PhysicsWallah among top raisers

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India’s startup ecosystem is showing renewed confidence in public fundraising, with at least 12 emerging tech firms filing draft IPO papers this year to collectively raise over Rs 18,000 crore (around $2.2 billion) through fresh share issuances. According to ET, the trend marks a growing shift towards local stock markets, even among mid-sized and smaller digital-first ventures.E-commerce company Meesho is set to lead the pack, eyeing a fresh issue of Rs 4,250 crore through a confidential filing expected soon. Close behind is edtech firm PhysicsWallah, which aims to raise Rs 4,000 crore. Fintech players Pine Labs and Groww are also in the fray, targeting Rs 2,600 crore and Rs 1,735 crore, respectively. Other companies like Boat, Wakefit, Capillary Technologies and Urban Company plan to raise smaller amounts, each under Rs 1,000 crore. These numbers do not include the offer-for-sale portions, which will take overall IPO sizes even higher.Investment bankers noted that startups are increasingly opting for India listings over international exchanges. “India has become the third largest IPO hub after the US and China for internet companies,” said analysts at Bank of America Global Research in a June report, adding that “many internet firms with overseas domiciles have shifted base back to India” to tap stronger valuation multiples locally, reported ET.Six of the 12 firms, including Groww, PhysicsWallah, Shiprocket, Shadowfax, Boat and Meesho, have opted for the confidential route under Sebi regulations, allowing them to fine-tune IPO size and keep financial details under wraps until they are ready to proceed publicly.The motivation behind these IPOs varies. While some aim to fund growth, research, and expansion, others plan to repay debt or support working capital. Urban Company, for instance, swung to profitability in FY25, reporting a Rs 240 crore net profit against a Rs 93 crore loss a year earlier. Similarly, Groww saw its net profit more than triple to Rs 1,819 crore on revenue of Rs 4,056 crore, underlining improving fundamentals. Shadowfax also posted operational profits while significantly cutting its net losses.“Many of these startups are approaching public markets because they’ve hit a level of maturity. They’re either profitable, market leaders, or offer strong growth visibility,” an investment banker was quoted as saying by ET on condition of anonymity. He added that investors are still cautious, particularly with loss-making firms, but are open to IPOs if there is clarity around profitability or cash flow projections.The current trend contrasts with the mega-IPOs of 2021–22, when giants like Zomato (now Eternal), Paytm, Delhivery, PB Fintech and Nykaa raised over Rs 25,000 crore in total. In recent years, smaller issues have dominated the landscape, with firms like Ixigo, Awfis, Blackbuck and Honasa Consumer staying below the Rs 1,000 crore threshold.Market volatility had earlier prompted concerns over listing prospects, especially following policy moves such as the US’s reciprocal tariffs under President Donald Trump. Yet, companies appear to be filing draft red herring prospectuses in anticipation of favourable market conditions for securing desired valuations.