In India, there was a time (in 2021) when only 15k startups were registered and time flies, as in 2025, there are more than 180k startups registered. But the real question is: how many startups get listed on the stock exchange?
The first major wave of Indian startup IPO began after 2021, particularly in 2024, when 13 companies went public. Reports indicate that 2025 is expected to be a record-breaking year for startup listing India, with over 40 new companies set to go public. This has made 2025 a defining year for the trend of startups going public.
But it has also proved one thing that the IPO route is no longer limited to large companies. IPO for a new business is tough, but after seeing the victory of the startup listing India, it seems possible.
For many startups, the idea of going public feels almost impossible because of the myth that only big companies can go public. But is that true? Do startups have no right to go public? Every startup planning to go public mostly questions the same, but the answer is no.
Startup listing India is no more a hidden word to all owners. However, they must understand the actual purpose behind this— a Startup IPO is not just about raising funds; it represents a shift in identity, making a startup more visible, accountable to the market, customers and investors.
A startup is aiming for an IPO, but is the startup even eligible? Basically, IPO eligibility depends from startup to startup. The Indian ecosystem for IPO is driven by a strict regulatory framework. It's not impossible for a startup to go public, but it's definitely not an easy task to perform with the help of an expert or advisor, as there are two main routes for a startup to comply with their IPO eligibility to go public: Mainboard (NSE/BSE) and SME (small and medium enterprises). Here are the IPO eligibility criteria for a startup IPO in India:
|
Basis |
Mainboard IPO Eligibility |
SME IPO Eligibility |
|
Track Record |
At least 3 years |
At least 3 years |
|
Net Tangible Assets |
Minimum ₹3 crore in each of the preceding 3 years |
Minimum ₹1.5 crore in the preceding 3 years |
|
Profitability |
at least ₹15 crore in 3 years |
Minimum ₹1 crore in 2 years |
|
Net Worth |
Positive net worth of at least ₹1 crore in each preceding year |
Minimum ₹1 crore in the latest audited financial year |
|
Issue Size |
Minimum ₹10 crore |
Generally smaller than Mainboard IPOs |
|
Corporate Governance |
Must meet strict rules(e.g., independent directors, audit committee) |
Must meet strict rules(e.g., independent directors, audit committee) |
|
Promoters' Contribution |
Standard promoter lock-in applies; minimum 20% of post-issue capital |
Standard promoter lock-in applies; minimum 20% of post-issue capital |
These are some points of the IPO eligibility criteria based on the choice of platforms. Startups aiming for IPO listing in India must meet them. IPO offer multiple benefits to startups that make them more stable for future market growth and presence. These benefits include:
In India, the listing of Startup IPOs is regulated and monitored by key stock market authorities such as the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Together, SEBI, BSE and NSE create a structured framework that sets the IPO eligibility criteria that enable startup listing India with confidence, ensuring proper governance, compliance and market integrity.
In India, startups have mainly two platforms to go public, depending on their size, capital and market capitalisation - Mainboard and SME. These platforms are regulated by SEBI and exchanges.
Main Board IPO ( NSE/BSE):
The Mainboard IPO platform is for large and well-established companies or those with a market capitalisation exceeding ₹1 crore. A company must have a minimum post-issue capital of INR 10cr or more and then a startup can get listed under the stock exchange.
For the mainboard IPO startup listing India, a startup needs to fulfil SEBI’s regulatory criteria, provide extensive disclosures and pay higher listing fees to ensure transparency and investor protection. This platform is most suitable for startups that have a strong track record, financial performance and brand recognition in the market.
SME IPO (Small and Medium Enterprise Platform)
The SME IPO platform is specifically for small businesses that are planning to raise capital and want to grow their market presence. Startups with a post-issue paid-up capital between ₹1 crore and ₹25 crore are eligible to list on this platform.
These companies can be listed on the BSE SME Exchange, which provides executable routes to public markets. The SME IPO as a route is good for small companies or startups because it requires less paperwork or documentation in comparison to Mainboard listings.
When a startup decides to go public, it has to follow certain guidelines or IPO eligibility criteria as per SEBI and Stock Exchanges, which is executed in a step-by-step process. Although these steps are definitely not so easy to clear without the help of an IPO expert. Going public is a strategic move to raise significant capital, increase visibility and provide growth to the startup. An IPO for a new business requires navigation and transparency. This process includes:
1. Business Evaluation & IPO Readiness Check
Before going public, a startup must ensure all its information related to financial, governance structure and growth potential and all should be well-arranged. A startup needs to convert from private to public for listing.
2. Appointing Merchant Bankers & Advisors
A startup needs expert guidance to navigate the complex IPO process. Merchant bankers, auditors, legal advisors and registrars are appointed to manage compliance, documentation and regulatory fulfilment. But the IPO Advisors play an important role in the startup IPO journey as they provide the right time to get listed.
3. Preparing DRHP (Draft Red Herring Prospectus)
The DRHP is a detailed document submitted to SEBI or the SME exchange explaining the startup’s business model, financials, risk factors and IPO plans. This document is essential for regulatory review and investor evaluation, forming the foundation for the IPO offer.
4. Regulatory Filings & SEBI Approval
After the DRHP submission, the startup must get approval from SEBI. Once approved, the Final Prospectus (RHP), including the IPO price filed.
5. Roadshows & Investor Outreach
A startup provides a presentation and roadshow to the investors to generate interest for their IPO. These presentations help educate investors as well as retail investors and they provide growth and end up as a successful subscription.
6. IPO Launch & Post-Listing Compliance
After the IPO opens for subscription, the startup needs to regulate compliance, corporate governance and ongoing investor relations for positive market recognition and credibility.
The journey of IPO for new businesses is a complex process, but it also contains its own benefits, like raising capital, market recognition, broader reach of investors. But the process is almost impossible to handle without the guidance of an expert or advisor.
IPO for new businesses is way ahead of raising funds as it opens the door of opportunity and allows potential investors to join a startup after the startup IPO welcomes many interested customers and opportunity seekers, as it is also great for the exit of investors. It is a journey where a startup becomes a recognized company with a broader market reach. IPO for new businesses benefits in several ways;
An IPO for new businesses is not just a fundraising method. It is a way for a startup to enter the market and build a recognised image by gaining credibility, liquidity for early investors and founders.
Before an IPO, a startup faces several challenges due to market pressure to show consistent growth & profitability. When a startup converts from private to public, it must maintain transparency, which increases both workload and pressure. Some challenges, like financial, operational and market challenges, which include:
India IPO provides the best consultancy to startups and navigates them through their IPO journey, as India IPO hires the best experts to prepare the IPO readiness and makes the comprehensive process of IPO for new businesses easy and understandable.
India IPO provides benefits to startups in their IPO journey, which are:
These benefits, together provided by the India IPO, make a startup IPO journey more approachable and the India IPO helps a startup listing India and provides guidance in the roadshows and also provides strategic advisory.
An IPO works as a transformation phase for startups. It helps startups to gain market credibility, improve brand visibility, attract investors by roadshow and presentation and provide liquidity for founders and early investors. While the startup IPO journey involves complex regulatory, operational and financial challenges, expert guidance like India IPO provides guidance that can simplify the process, ensure compliance and maximise success. With proper guidance and preparation, a startup IPO can generate growth, strengthen market presence and open doors to long-term opportunities.
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