NEW DELHI— Indian venture-backed startups raised more than ₹44,000 crore (approximately $5.3 billion) from public markets in FY25 through initial public offerings (IPOs), follow-on public offerings (FPOs), and qualified institutional placements (QIPs), according to a new report by The Rainmaker Group.
The RainGauge Index FY25 Annual Report highlighted that public markets have now overtaken private capital as the leading source of late-stage funding for startups, cementing their role as the dominant growth capital channel.
FY25 marked the first complete market cycle for India’s startup listings, following the IPO boom of 2021–22, steep corrections in 2023, and market rationalization in 2024.
“All of this played out against the backdrop of a cyclical economic slowdown in India during FY25, forcing many consumer-facing companies to grapple with margin pressures and sluggish revenue growth,” the report noted.
The year also witnessed secondary exits totaling over ₹20,000 crore, as private equity and venture capital firms cashed in on early investments through block deals.
“FY25 didn’t just test India’s startup listings — it matured them,” said Kashyap Chanchani, Managing Partner at The Rainmaker Group. “The public market has now become the preferred playground for India’s breakout companies. We’ve seen the full arc: IPO euphoria, valuation winter, and now a clear re-rating driven by fundamentals.”
The report also pointed to symbolic structural changes within the market. Mutual fund participation rose significantly, with average holdings in RainGauge Index companies increasing from 10 percent in March 2024 to 14 percent in March 2025.
Despite heavy foreign institutional investor (FII) outflows exceeding ₹78,000 crore in Q1 FY25, global investors made a strong return in the final quarter, buoyed by expectations of interest rate cuts and confidence in India’s stable macroeconomic outlook.
The Rainmaker Group is one of India’s leading investment banks focused exclusively on the private markets. (Source: IANS)
