Top Startup News: SEBI Tightens SME IPO Rules, Mobikwik's 59% Debut...

The Indian startup ecosystem continues to buzz with exciting developments this week! From SEBI's tightened SME IPO regulations to Mobikwik's stellar debut and PhysicsWallah's upcoming IPO, there's no shortage of major news shaking up the space.

Here’s TICE brings you weekly Startup Spotlight which presents most significant updates that could shape the future of Indian startups.

Top Startup News

1. SEBI Tightens Rules for SME IPOs: A Move Towards Greater Transparency

India's Securities and Exchange Board (SEBI) has announced new measures aimed at enhancing transparency and compliance in the SME IPO market. The new regulations require small and medium enterprises (SMEs) to demonstrate an operating profit of at least ₹1 crore in two out of the last three years before filing for an IPO. Additionally, the offer-for-sale (OFS) size is capped at 20%, with shareholders permitted to sell only up to 50% of their holdings. To ensure long-term commitment, promoters’ excess shares will be locked in for up to two years. Other notable updates include the matching of Non-Institutional Investors (NII) allocations with those in the main board IPOs and a corporate purpose cap of 15% or ₹10 crore, whichever is lower.

Read More: SEBI's New Rules for SME IPOs: What's New For Startups & Investors?

2. Mobikwik Debuts with a 59% Premium: A Strong Market Entrance

Mobikwik made an impressive debut on the stock market this week, with its shares soaring 59% above the issue price. The company’s ₹572 crore IPO, which involved the issuance of 2.05 crore equity shares, has been hailed as a strong start. The funds raised through the IPO will fuel Mobikwik's expansion plans, particularly in its financial and payment services, and further investments in AI and machine learning research. The debut performance echoes high investor confidence, as seen in strong grey market trends leading up to the launch.

3. PhysicsWallah Gears Up for an IPO in 2025: A Major Shift Ahead

PhysicsWallah, the popular ed-tech startup, is making waves in the startup world as it prepares to go public. The company recently announced plans to change its name to PhysicsWallah Limited, signaling its transition to a public company ahead of its IPO scheduled for 2025. The IPO, expected to raise between $400 million to $500 million, is being managed by leading investment banks such as Axis Capital, Kotak Mahindra, Goldman Sachs, and JP Morgan. PhysicsWallah aims to list its equity shares across multiple stock exchanges, marking a significant milestone in its growth trajectory.

4. Zerodha Launches Margin Trading Facility, But with Caution

Zerodha, India's leading online stock brokerage, has launched its Margin Trading Facility (MTF), allowing investors to borrow funds to purchase stocks for delivery. Under the MTF, investors need only pay a portion of the stock’s value upfront, while Zerodha covers the rest. However, co-founder Nithin Kamath has warned investors about the current market conditions, urging caution as the market continues to face volatility. While the MTF is available for select Group-I stocks, investors should carefully assess the costs associated with this facility before proceeding.

5. Cricket Icon Sachin Tendulkar Joins Kissht as Investor and Ambassador

In a groundbreaking partnership, cricket legend Sachin Tendulkar has joined digital lending platform Kissht as both an investor and its first-ever brand ambassador. Tendulkar’s involvement will help bolster Kissht’s reputation and expand its reach, bringing accessible and transparent financial services to millions across India. As part of the collaboration, Tendulkar will feature in a series of marketing campaigns, further promoting Kissht’s core values of trust and transparency in lending.

Read More: India's EV Revolution: From Niche to Mainstream, What Lies Ahead?

6. KKR Invests $60-$70 Million in Rebel Foods: A Game-Changer for Cloud Kitchens

Rebel Foods, one of India’s largest cloud kitchen operators, has secured a $60-$70 million investment from global investment firm KKR. This funding will help Rebel Foods expand its operations in India and the Middle East, as well as grow its brand portfolio, which includes Faasos, Behrouz Biryani, and Wendy’s. With over 5,000 internet restaurants worldwide, Rebel Foods serves more than 2 million customers annually. The company is now gearing up for an IPO by 2026, with KKR’s investment paving the way for further growth.

7. DPIIT Partners with Tally Solutions to Empower Startups

The Department for Promotion of Industry and Internal Trade (DPIIT) has teamed up with Tally Solutions Pvt Ltd to help Indian startups navigate the complex business environment. The partnership will introduce a series of workshops covering essential topics such as financial management, compliance, marketing, and investment readiness. This initiative aims to provide startups with the practical tools and insights they need to succeed both in India and globally, creating a strong foundation for sustainable growth.

Read More: DPIIT's New Partnership will help India’s Manufacturing Startups

8. magicpin Launches 15-Minute Food Delivery Service: A Revolutionary Step

magicpin has taken food delivery to a whole new level with the launch of magicNOW, a service that guarantees food delivery within just 15 minutes. Available on a pilot basis across major cities in India, magicNOW promises to deliver fresh and high-quality food within a 1.5 to 2 km radius, ensuring both speed and quality. Powered by Velocity, magicpin’s third-party logistics platform, the service is set to disrupt the food delivery space by offering ultra-fast service from popular restaurants.

These are the key stories making headlines in the Indian startup ecosystem this week. Stay tuned for more updates, as the startup landscape continues to evolve rapidly.

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