Archive · 22 Dec 2025
Indian Startups Shift to IPOs Amid Flat Unicorn Growth
In 2025, only five startups in India became unicorns, which means they reached a value of over $1 billion.
This is the same number as last year, even though more money was invested in these startups.
Many startups are now choosing to go public by listing on the stock market instead of getting private funding.
This change is happening because investors and startups are focusing more on making a profit and being realistic about their growth.
Private equity firms are also playing a bigger role in investing in these startups.
Meanwhile, companies in India are making more profits compared to the money they invest, which is the highest it has been in many years.
This makes India an attractive place for investors.
Only five Indian startups became unicorns in 2025, the same as in 2024, despite a 23% increase in growth-stage funding.
The five unicorns are Dhan, Jumbotail, Drools, Porter, and Juspay.
Many startups are opting for IPOs instead of private funding rounds to reach unicorn status.
Private equity investment in India slowed in 2025 due to geopolitical concerns, with $14.9 billion invested across 217 deals by Q3, compared to $26.3 billion in 2024.
Indian companies are making higher profits relative to their capital employed, with a ratio of 10.47% in September 2025, the highest since 2011.
- Who
- Indian startups and investors
- What
- Shift towards IPOs and flat unicorn growth
- When
- 2025
- Where
- India
- Why
- Focus on profitability and valuation reset
- Number of unicorns in 2025
- 5
- Growth-stage funding in 2025
- $3.2 billion
- Growth-stage funding in 2024
- $2.6 billion
- Unicorns in 2022
- 22
- PE investment in India (2025, Q3)
- $14.9 billion
- PE investment in India (2024)
- $26.3 billion
- Profit after tax relative to capital employed (Sep 2025)
- 10.47%
- Profit after tax relative to capital employed (Sep 2024)
- 8.41%