India’s Startup IPO Boom Turns Into a $1.5 Billion VC Cashout

A new wave of Indian startup IPOs is putting real money back into the hands of venture capital (VC) investors. After years of paper gains and markdowns, early backers of several leading consumer-tech and fintech unicorns are finally cashing out shares worth around ₹13,220 crore (nearly $1.5 billion) through secondary share sales in 2025 — marking the strongest liquidity cycle since 2021.

VC Funds Lead Exit Gains

According to filings with the Securities and Exchange Board of India (SEBI), eleven major startups — including Groww, Lenskart, Pine Labs, Ather Energy, Bluestone, Urban Company, Meesho, Amagi Media Labs, Wakefit Innovations, Curefoods India, and Shadowfax Technologies — have seen existing shareholders sell significant equity stakes via the offer-for-sale (OFS) route.

While the ₹13,220 crore includes both institutional and promoter-level exits, Peak XV Partners, Accel, and Elevation Capital account for the bulk of realized gains due to their exposure across multiple IPOs and large exit tranches.

Also Read: SEBI Chief Urges Financial Intermediaries to Maintain Clean, Auditable Books

Key IPOs Driving the Liquidity Boom

The strongest exits have emerged from startups that have either listed recently or are in the final stages of pricing their issues — such as Pine Labs, Lenskart, Bluestone, Urban Company, Ather Energy, Shadowfax, and Groww.

• Pine Labs priced its shares at ₹210–221, offering 14.78 crore shares via OFS, translating to a ₹3,266 crore exit for investors.

• Shadowfax Technologies launched a ₹1,000-crore OFS alongside an equal-sized fresh issue.

• Lenskart’s IPO generated ₹5,318 crore through a 13.23-crore share offer at ₹382–402.

• Bluestone raised ₹1,236 crore from 2.39 crore shares at ₹492–517, while Urban Company’s OFS amounted to ₹1,471 crore.

• Ather Energy sold 1.10 crore shares at ₹304–321, worth ₹355 crore.

• Groww priced its shares at ₹95–100, with a ₹574-crore OFS, including exits by Peak XV, Ribbit Capital, VY Capital, and Tiger Global.

Together, these seven IPOs make up the ₹13,220 crore confirmed in secondary exits — money directly flowing to shareholders rather than to the companies themselves.

Upcoming Listings Could Push Exits Beyond ₹15,000 Crore

Four startups — Meesho, Amagi, Wakefit, and Curefoods — have filed draft prospectuses and are awaiting pricing announcements. Once these are finalized, total proceeds from secondary exits could exceed ₹15,000 crore, extending what has already become the largest liquidity event in four years for Indian venture capital.

Early Investors Reap Big Multiples

Recent IPOs have delivered impressive returns for early investors:

• Accel India exited Urban Company at ₹103 per share, compared to an acquisition cost of ₹3.61 — a 29× gain.

• Elevation Capital earned 19× returns on its ₹5.39 cost in the same company.

• In Bluestone, Accel’s ₹57.9 cost turned into a 9× gain at ₹517.

• Lenskart provided SoftBank Vision Fund a 5.4× return, while Premji Invest gained 17×.

• At Pine Labs, Peak XV Partners saw a 39× return at the upper price band.

So far, Peak XV Partners has realized ₹2,444 crore from Pine Labs and Groww combined, while Accel India and Elevation Capital have booked ₹589 crore and ₹346 crore, respectively.

Mature, Measured IPO Cycle

Unlike the overheated 2021 IPO boom, this new phase is characterized by measured valuations and stronger financials. Many of the new-age issuers — including Lenskart, Bluestone, Wakefit, and Amagi — are profitable or nearing breakeven, making them more attractive to institutional investors.

This year’s IPOs also highlight a strategic shift — more focus on investor liquidity than capital raising. The growing share of secondary sales shows that India’s public markets have become a dependable exit route for venture investors.

With ₹13,220 crore already realized and more in the pipeline, 2025 marks the strongest investor exit cycle since India’s first tech IPO wave, reaffirming confidence in the country’s startup ecosystem.

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