In comparison to their private fundraising rounds, a number of firms that choose to list on public markets are achieving larger values. Analysts claim that startups nowadays are maintaining the interest of ordinary investors with better fundamentals and a clear route to success.

On the day of listing, Brainbees Solutions, the company that runs the newborn care retailer FirstCry, saw a 44% increase in valuation to 32,783 crore from its last recorded valuation of $2.7 billion, or 22,698 crore, in early 2023. 

After raising its last round of prices in September 2023, Awfis, a supplier of co-working and managed offices, saw a 53% increase in valuation from $226 million or 1,900 crore to 2,909 crore on the listing day in May. Its valuation has increased to 4,828 crore as of November 1, 2024, which is more than 2.5 times its previous private valuation. With a market valuation of 2,152 crore, SoftBank-backed Unicommerce was one of the more recent initial public offerings (IPOs) with a market capitalization-to-sales ratio of 20.7.

Because of the simplified procedure and less compliance requirements, it is more advantageous for startups to go public. 

Several startups have listed on stock exchanges this year, including Awfis, Go Digit, TBO Tek, Ola Electric, FirstCry, ixigo, and Unicommerce. Additionally, according to analysts, the general bullish mood in the stock market has raised demand for tech equities, especially those with high growth potential.

Retail investors' increased trust in startups following the successful IPO conducted by companies like Mamaearth is another factor contributing to the growing profits from IPOs and funding for startups nowadays. Honasa, the parent company of Mamaearth, was valued roughly 23% more on the day of its October offering on the stock exchanges than it was in a private investment round.  Additionally, businesses are being valued by investors more and more according to their scalability and the size of their target markets. For example, experts note that businesses such as Zaggle are attracting public investors who are looking for long-term growth prospects because of their creative solutions that allow them to access large markets. The finance startup's market capitalization was 5,285 crore as of November 1, 2024.

According to reports, Series A fundraising rounds have experienced an average increase of $18 million since the beginning of 2024.

Speaking to this, Nruthya Madappa, Partner, 3one4 Capital states, “India’s strong regulatory environment, coupled with a growing focus on domestic unicorns and high-quality businesses, is driving momentum in IPO listings, despite global economic challenges. In this favorable IPO environment, we are also witnessing public savings being channeled into equity at higher rates”.