India's Startup IPO Market Faces Real Test: From Storytelling to Profitability

• Indian startup IPO market matured in 2025, shifting focus from growth potential to execution, unit economics, and clear path to profitability, as seen with varied outcomes for Ather Energy and Ola Electric.
• 2025 saw 18 tech startups raise ₹41,000 crore; 65% listed at profit, but 59% traded below listing price by year-end, indicating market demand for proof over potential.
• Governance, board composition, audit quality, and disclosure practices became critical valuation factors, ending the era of unscrutinized oversubscription.
• Founder mindset shifted to treating IPO preparation as a two-year operating discipline, emphasizing internal controls and institutional thinking.
• 2026 will test the market's ability to absorb over 190 IPOs (₹1.67-2.08 trillion), demanding genuine business transformation and consistent profitability, not just VC multiples.

Why It Matters: India's startup IPO market is maturing, demanding profitability, governance, and consistent performance over mere growth.