India’s much-anticipated IPO wave is showing signs of delay as global macroeconomic volatility, geopolitical tensions and valuation mismatches prompt startups and investors to reassess listing timelines.
Fintech major PhonePe recently put its IPO plans on hold, underscoring how even well-prepared, market-leading companies are choosing to wait for more favourable conditions. The move comes at a time when several new-age firms, including Zepto, OYO, Acko and Turtlemint, were gearing up to tap public markets in what was expected to be a blockbuster year for listings.
“Global macro volatility is directly impacting IPO timing more than IPO intent,” said Ujwal Sutaria, founder and general partner at TDV Partners. “Many fundamentally strong companies are choosing to hold back, rather than rush into listing at the wrong time.”
Sutaria added that IPO timelines are increasingly becoming “market-driven rather than milestone-driven,” with founders recognising that timing is as critical as business readiness.
Valuation reset underway
A key friction point emerging in the current environment is the widening gap between founder expectations and public market valuations.
“We’re seeing a clear disconnect between what founders expect and what public market investors are willing to pay,” Sutaria said, attributing it to lingering expectations from the 2021–22 funding boom, even as public investors shift focus to profitability and cash flows.
The case of PhonePe highlights this divergence, with investor appetite reportedly pegging its valuation significantly below prior private market estimates.
Shyam Menon, co-founder at Bharat Innovation Fund, said macro headwinds have created “an environment with zero tolerance for unpredictable cash burn,” forcing startups to recalibrate.
“IPO readiness is no longer just about scale; it is about profitability,” he said, adding that companies are cutting costs and tightening unit economics to present stronger financials before listing.
He also noted that founders are beginning to accept that “pricing an IPO to leave some money on the table for retail investors is a better long-term strategy” than chasing peak valuations and risking weak listings.
Delays and alternative exits
Industry executives expect IPO delays to become more common over the next 12–18 months, with companies adopting a wait-and-watch approach amid global uncertainty.
“The current VUCA environment… has definitely thrown a spanner in the works for impending IPOs,” said Rajeev Kalambi, general partner at Cactus Partners, pointing to geopolitical tensions and global trade disruptions. “We expect several IPOs to be deferred… merchant bankers would be keeping their eyes peeled to identify a window of opportunity.”
At the same time, startups are increasingly exploring alternative liquidity options. “If IPO markets are not attractive, companies tend to explore a combination of primary fundraising and secondary sales,” Kalambi said.
Sutaria echoed this trend, noting that secondary transactions, pre-IPO rounds and strategic sales are gaining traction as firms seek flexibility amid tighter capital conditions.
“The companies that will succeed in the next IPO cycle won’t just be the fastest-growing,” he said. “They’ll be profitable, capital-efficient, and just as thoughtful about timing the market as they are about building their business.”