Mumbai — India’s capital markets are preparing for one of their busiest seasons in history as a wave of new-age startups readies for public listings around Diwali 2025. The momentum follows the spectacular debut of Urban Company, whose IPO was oversubscribed more than 100 times, setting the tone for a season of optimism and investor enthusiasm.
Pine Labs has already secured approval from the Securities and Exchange Board of India, while Groww and PhysicsWallah have filed updated papers. PhonePe is reportedly preparing a confidential filing for a billion-dollar listing, and other names such as Lenskart and Meesho are also in the pipeline. Collectively, these companies are expected to raise between 2 and 3.5 billion US dollars, with some estimates reaching as high as 5 billion.
The timing is strategic. Diwali has long been associated with optimism in Indian markets, and promoters often align major launches with the festive season to capture buoyant retail participation. Domestic systematic investment plan inflows, which reached 28,265 crore rupees in August, are helping offset intermittent foreign investor outflows, ensuring liquidity for large floats.
Regulatory reforms have also played a crucial role. Sebi’s introduction of the confidential filing route and reduced lock-in periods has lowered risks for startups, while anchor reforms mandating broader participation from insurers and pension funds have deepened the investor base. With more than 60 draft red herring prospectuses filed in the past three months, the IPO pipeline is stronger than ever.
India’s IPO market has already mobilized 8.5 billion US dollars in 2025, with full-year forecasts in the 23 to 25 billion range across sectors. The surge of startup listings reflects both the maturity of India’s digital economy and the appetite of investors for growth stories in fintech, edtech, and consumer platforms.
For founders, the challenge will be to balance valuation expectations with market realities, ensuring that post-listing performance sustains investor confidence. For the market as a whole, the Diwali IPO rush represents not just a financial milestone but also a statement of leadership, signaling India’s growing role as a hub for innovation and capital formation.
