Startup IPOs in 2025: Report Highlights Trends

New Delhi, Feb 11 (PTI) Several high-quality startup firms are likely to go public in 2025 despite global challenges, and the funding environment is also likely to improve this year, according to a report by venture debt firm InnoVen Capital.

It also said that 47 per cent of startup founders out of 100 who participated in the survey expect the pace of hiring to increase this year.

"Of those who attempted to raise in 2024, 63 per cent had a favourable experience. 79 per cent of founders are optimistic that the funding environment will improve in 2025," the India Startup Outlook Report said.

Ashish Sharma, Managing Partner at InnoVen Capital India, said the report will provide useful insights to all stakeholders that have a keen interest in the venture ecosystem.


"While the macro is challenging, we expect several high-quality companies to go public in 2025," he added.

Further, the report said startup founders continue to look at domestic IPO as the likely mode of exit, with 73 per cent of founders choosing this mode of exit, up from 64 per cent in 2023.

With the rapid development of AI capabilities, 28 per cent believe that Artificial Intelligence (AI) will have a significant impact on their business models over the next 2-3 years, primarily in the fintech and enterprise space, it said, adding that hiring pace is also expected to pick up in 2025.

"Gender diversity in leadership roles continues to be a challenge. 83 per cent of companies have less than 20 per cent women in leadership roles, and 51 per cent have less than 10 per cent women in their leadership team," it said.

It added that most startup founders continue to believe that focus on sustainable business models has been a key outcome of the funding slowdown.