New-Age Tech Firms Double Market Share to 2.49% of India’s Total Market Cap

India’s new-age technology companies have significantly expanded their presence in the public markets. A Moneycontrol analysis shows that this segment now accounts for 2.49% of India’s total stock market capitalisation, nearly doubling from 1.36% in December 2021. The rise reflects strong IPO momentum, improved profitability across tech-led businesses, and deeper institutional participation.

Rising Market Share and Total Valuation

According to the analysis, 34 new-age tech firms together have a market capitalisation of Rs 11.9 lakh crore as of November 18, 2025.
This represents 2.49% of India’s total market capitalisation, which stood at Rs 476 lakh crore on the same day.

In comparison, in 2021:

• India’s total market cap was Rs 266 lakh crore

• New-age tech firms contributed 1.36%

Despite the growth, analysts note that the overall contribution remains modest relative to the size of India’s private startup ecosystem.

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What’s Driving the Expansion of New-Age Market Cap?

Wave of New IPOs Since 2024

The biggest shift has come from a broader set of companies going public over the last two years. The new-age segment is no longer dominated by the 2021 IPO cohort alone.

Key contributors include:

• Zomato – nearly Rs 3 lakh crore

• Groww – crossed Rs 1.1 lakh crore

• Swiggy – approaching Rs 1 lakh crore

• Lenskart – around Rs 74,000 crore

• PhysicsWallah – near Rs 42,000 crore

• GoDigit, Pine Labs, Ather Energy – in the Rs 25,000–32,000 crore range

Strengthening the Mid-Tier Tech Segment

Mid-sized tech companies have also deepened the market-cap pool:

• Ixigo, FirstCry, BlackBuck, Urban Company,

• Bluestone, Smartworks, TBO Tek, Awfis

These firms fall between Rs 4,000 crore and Rs 22,000 crore, offering a healthy mid-market tier that was missing in 2021.

Back then, fewer than 10 companies formed the entire listed new-age group. Today, more than 30 companies contribute, with 2024–25 listings alone adding over Rs 8 lakh crore in fresh market value.

Why Investor Confidence Has Improved?

Industry experts believe that investor conviction has improved for three main reasons:

1. Better Profitability and Unit Economics

Many companies entering the public markets now have tighter cost structures.

Examples include:

• Groww – profit rose to Rs 449 crore in FY24, up from Rs 73 crore

• Urban Company, Lenskart, Pine Labs – gained from cost adjustments or deferred tax credits

While some improvements stemmed from one-off gains, the broader trend shows more predictable earnings and disciplined financial performance.

2. Stronger Institutional Participation

Domestic institutional investors have shown increased interest compared to the 2021 listing cycle, making valuations more stable and aligned with fundamentals.

3. Better Governance and Compliance Preparedness

Companies now prepare earlier for IPOs, strengthening governance and reporting standards.
According to experts, early listings like Zomato, PB Fintech, and Delhivery helped set benchmarks, creating reference points that didn’t exist before.

Performance of Early Listings and Market Sentiment

Early listed companies have played a key role in shaping market sentiment:

• Zomato – market cap rose from Rs 1.08 lakh crore (2021) to nearly Rs 3 lakh crore

• PB Fintech – doubled to over Rs 83,000 crore

• Delhivery – stabilised above Rs 32,000 crore after initial volatility

These companies now act as valuation anchors for the broader tech category.

IPO Strategy and Founder Behaviour Have Shifted

Founders and boardrooms are increasingly viewing IPOs as a reliable path for long-term capital. Companies are preparing earlier, focusing on sustainable earnings, governance and compliance readiness well before listing.

Does the Public Market Reflect the True Value of Indian Startups?

Not yet.

Even after the surge, the listed new-age tech firms represent only a fraction of India’s startup economy:

• India’s unicorns are valued at $297 billion (approx. Rs 25 lakh crore)

• This equals 6% of India’s total market cap

• Only a part of this value has reached stock markets through IPOs

Experts believe the current 2.49% share could grow significantly over the next decade as more late-stage startups go public.

Some estimates suggest new-age tech companies may reach double-digit share by 2030–32, and potentially 25% of total market cap by 2030, depending on listing activity and market stability.

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