As the global startup ecosystem navigated through funding winter and economic uncertainties, India’s startup scene emerged resilient in 2024, with exit deals worth over $5 billion. From high-stakes secondary transactions to IPOs and block deals, investors and startups collaborated to redefine the exit landscape. This financial crescendo not only marks a recovery from 2023 but also sets the stage for an even more dynamic 2025.
“Exits are the lifeblood of investment cycles, and 2024 has given us plenty to celebrate,” says an industry veteran.
With nine IPOs and multiple high-value secondary deals, the ecosystem is buzzing with renewed optimism. But what drove this momentum, and what lies ahead? Let’s delve deeper with TICE.
Liquidity Through Secondary Transactions
For startups, liquidity has become a pivotal route to success, especially in the pre-IPO phase. Secondary transactions—where existing investors sell shares to new ones—stood out as a key mechanism. Unlike primary funding, these deals don’t add fresh capital to company coffers but provide much-needed liquidity to early backers while enabling new investors to join the journey.
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After the euphoric dealmaking of 2021 and the slowdown in 2023, secondary transactions rebounded significantly in 2024. Startups recorded close to $1.5 billion in secondary deals, a stark increase from the estimated $700 million in 2023. Big-ticket transactions, often bundled with primary funding, dominated headlines, reflecting the ecosystem’s growing maturity.
IPO Mania: Startups Going Public
The year’s IPO landscape was equally electrifying. Companies like Swiggy, Awfis, FirstCry, and Go Digit collectively generated $1.6 billion in investor exits through offers for sale (OFS). Swiggy’s $1.3 billion IPO alone accounted for $808 million in OFS, showcasing the appetite for growth stories in public markets.
Block deals in listed startups such as Zomato, Mamaearth parent Honasa Consumer, and PB Fintech (Policybazaar’s parent) further underscored the vibrancy of the exit market, with shares worth $2 billion changing hands. Experts predict that the IPO pipeline for 2025 will at least double, with prominent names like Rebel Foods, Lenskart, and PhysicsWallah already in the preparatory stages.
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Rise of Secondary-Focused Funds
Interestingly, 2024 also witnessed the emergence of funds dedicated to secondary transactions. Kenro Capital and Oister Tribe Ace Fund were among the prominent entrants. Kenro Capital’s $40 million investment in K12 Techno Services and Oister Tribe’s stake in OfBusiness exemplify this trend.
“With significant primary capital pumped into the ecosystem over the last few years, investors are actively seeking exit opportunities,” says an executive from a secondary-focused firm. These funds are expected to play a crucial role in reshaping exit dynamics in the years to come.
Momentum Building for 2025
The buzz is far from over. Several high-growth startups, including Boat, Urban Company, and Bluestone, are preparing for public listings in 2025. “We aim to finalize our bankers in early 2025 and hit the public markets within the calendar year,” shares a senior executive at an IPO-bound firm.
Meanwhile, secondary deals continue to offer flexibility and liquidity for top-performing companies. Startups like Shadowfax, CaptainFresh, and Zetwerk are exploring such opportunities as they scale towards profitability and public-market readiness.
Funding Landscape: A Selective Revival
Though overall funding in 2024 reached $10.9 billion—a slight improvement over 2023’s $9.6 billion—it remains a far cry from the $24 billion raised in 2022 and $36 billion in 2021. The selective nature of funding in 2024, with only five new unicorns emerging, reflects a shift towards quality over quantity.
Many unicorns from the peak years of 2021 and 2022 may no longer qualify as such if revalued today, signaling a recalibration in market dynamics. Still, the steady rise in exits indicates that the ecosystem is finding its balance between growth aspirations and sustainable scaling.
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Looking Ahead: The Road to 2025
With more IPOs on the horizon and secondary transactions gaining traction, the Indian startup ecosystem is poised for a dynamic 2025. Venture capital firms, both new and established, are recalibrating strategies to align with this evolving landscape. For startups, the focus remains on achieving profitability and creating value for both investors and the market.
As 2024 concludes, the buzz in India’s exit street is a testament to the ecosystem’s resilience and adaptability. From big-ticket IPOs to strategic secondary deals, the year has laid a robust foundation for future growth. For startups and investors alike, the journey ahead promises to be both challenging and rewarding—a true reflection of the entrepreneurial spirit driving India forward.
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