IPO-bound startups find favour with investors amid funding resurgence

The tide of startup-funding is turning in India, with a rising trend of overall funding while the deal sizes grow bigger.

- ARYAMAN GUPTA

However, the spotlight now is on late-stage startups, many of which are seen to be headed for initial public offerings (IPOs).

Record surge in stock markets and consistently improving performances of listed startups are understood to have turned the sentiment for the better, especially for those that exhibit a clear path to an IPO.

The number of startup IPOs rose to 17 so far this year, from six in the first half of 2023 and 12 in the second half. In parallel, startup funding rose to $4.1 billion so far this year, up from $3.96 billion in H22023, confirming a trend of revival.

Funding for late-stage startups, which include the IPO-bound group, was $2.4 billion so far this year across 50 deals, compared to $2.3 billion through 61 deals in the second half of last year and $2.4 billion in January-June 2003, showing a rise in the size of each deal.