Indian Startups Pivot From Mega-Deals to IPOs as Public Markets Shine Bright

For years, India’s startup ecosystem was synonymous with jaw-dropping mega-rounds — the kind that crossed $100 million and instantly turned founders into business celebrities. But 2025 is telling a very different story. The country’s new-age entrepreneurs are no longer obsessing over massive private cheques. Instead, they’re looking at Dalal Street with newfound confidence — and, for many, unexpected success.

Something fundamental is shifting in the way Indian startups chase growth capital. The funding winter may officially be over, venture capital funds are flush again, but the biggest action isn’t in the mega-deal zone anymore. It’s unfolding in the public markets.

A maturing IPO environment — with better investor appetite, stronger liquidity, and a broader acceptance of tech listings — has opened a door that many founders earlier thought was reserved only for unicorns. Now, even companies with sub-billion-dollar valuations are stepping up to the public market with conviction.

This quiet but powerful transition is reshaping how capital flows across India’s innovation economy.

IPOs Steal the Spotlight From Big Private Rounds

In Mumbai — the heartbeat of India’s financial world — one trend is loud and clear: IPOs are taking the sheen off large $100M+ private deals.

VC funds are active again, capital isn’t scarce, and yet the mega-round counters are slowing down. The reason? Startups now see a clearer, faster path to the public markets.

Yes, there were some headline-grabbing deals last year. Zepto’s $450 million and Infra.Market’s nearly $200 million fundraise certainly turned heads. But both were pre-IPO rounds, not the traditional hyper-growth capital India’s startup story was once built on.

The motivation is straightforward: Why chase large private cheques when the public markets are paying attention — and paying well?

Public market investors in India have matured dramatically. They now understand new-age business models, are more open to tech-driven companies, and are no longer hesitant about loss-making but high-growth startups.

As Amit Nawka, Partner at PwC, puts it, “Several startups that were looking to raise $100M or bigger funding are now assessing how far they are from an IPO. If there’s enough investor interest in pre-IPO rounds, they take that; otherwise, they directly hit the public market.”

And that shift is clearly reflected in the numbers.

Urban Company Becomes a Bellwether

One of the biggest confidence boosters for Indian startups this year was Urban Company’s $215 million IPO, which saw a blockbuster listing.

The success of this listing did more than raise capital — it validated the idea that consumer-facing tech businesses can thrive in India’s public markets. It also reassured investors that liquidity doesn’t have to wait for a late-stage unicorn chase.

Padmaja Ruparel, co-founder of IAN Group, summed it up perfectly, “IPOs have allowed companies to get growth capital and generate liquidity for shareholders.”

In a market where exits were once considered the ecosystem’s biggest bottleneck, this shift is massive.

Big Deals Shrink, Small and Mid-Sized Transactions Surge

Fresh data from Venture Intelligence captures the trend with striking clarity:

Big Deals ($100M+)

• 2025: $2.5 billion

• 2024: $3.7 billion
  ➡️ Significant decline

Mid-Sized Deals ($10–50M)

• 2025: $3.8 billion

• 2024: $3.5 billion
  ➡️ Noticeable growth

The small-to-mid ticket deals are thriving. Seed to Series A rounds are closing faster than before. Early-stage VCs like Fireside Ventures, Blume Ventures, and Accel having raised new funds has added further fuel to this momentum.

And the ecosystem is buzzing.

As an expert notes, “There is enough money available, and $40–50 million cheques are moving around. A lot of deals in the $5–25 million range, especially in the consumer space, are in the works.”

Early-Stage Deal Velocity Picks Up

One of the strongest signals of ecosystem health is early-stage momentum — and it’s roaring back.

Fireside Ventures, for instance, recently closed a $253 million fund. With this pool, the firm expects to make 30–32 new early-stage investments.

Co-founder Vinay Singh says:

• Deal volumes at seed to Series A have risen sharply

• Closing timelines have shortened

• Valuations are beginning to creep up

His candid assessment of the current market mood says what everyone in VC circles has been whispering:

“There is no question of funding winter. We are entering bubble territory. Valuations are also creeping up but they are nowhere as high as 2020–21.”

This resurgence — cautious but energetic — shows that India’s startup ecosystem is rebalancing itself.

Why Mega-Deals Are Declining

There isn’t just one reason — it’s a mix of multiple powerful shifts:

1. IPOs offering faster, cleaner liquidity

Founders and investors don’t have to wait for billion-dollar valuations to exit.

2. M&A activity is picking up

Legacy companies are acquiring startups to expand market share, creating alternatives to bloated funding rounds.

3. Debt funding is becoming more mainstream

Startups are using structured debt and venture debt to extend runway, reducing reliance on huge equity cheques.

Together, these trends naturally reduce the need for the massive $100M+ rounds that dominated India’s startup news cycles for half a decade.

India’s startup landscape is hitting a new level of maturity:

• Founders are planning more sustainably

• Investors are focusing on cleaner unit economics

• IPOs are no longer reserved for mythical unicorns

• Early-stage capital is abundant

• The ecosystem no longer swings between hype and despair

Instead, it’s finding a steady, sustainable rhythm.

The shift from giant private rounds to confident public listings tells the story of an ecosystem that’s evolving — not cooling.

It’s the story of an economy where innovation isn’t just surviving the turbulence of global capital cycles but learning to thrive independently.