New-age firms may take 40 percent of Indian IPO proceeds
India’s new-age companies are set to capture a major share of the country’s capital markets. Projections indicate they could represent 40% of total Initial Public Offering proceeds by 2030. This change, noted in a recent study by Redseer Strategy Consultants, mirrors the sector’s maturation as firms expand revenue and profitability. The estimate signals a big leap from today’s situation, where these firms hold an estimated 25% share of IPO proceeds.
The financial impact of this trend is substantial. Redseer calculates that India’s overall IPO market could hit approximately $40 billion in calendar year 2030. Within that total, new-age companies are expected to contribute around $15 billion. This amount marks a sharp rise from current levels and points to deeper integration of these businesses into public equity financing.
Scaling Revenue and Profitability
Behind this fundraising potential lies a rapid expansion in the economic footprint of the new-age sector. The report forecasts that the combined revenue of these companies will triple over the next five years. It will rise from roughly $100 billion in fiscal year 2026 to nearly $300 billion by fiscal year 2031. Such growth in scale creates a larger pool of entities capable of meeting the rigorous requirements for public market listings.
Profitability metrics are also improving, though the picture is mixed. Combined EBITDA for the sector swung from a $4.8 billion loss in fiscal year 2023 to a $1.4 billion profit in fiscal year 2025. However, this positive shift is heavily concentrated in the Banking, Financial Services, and Insurance (BFSI) segment. In fact, BFSI accounted for roughly 140% of the FY25 profit pool. This means other sectors within the new-age economy collectively remained in the red during that period.
Given the heavy reliance on BFSI for current profitability, the broader sector’s path to sustainable earnings will likely depend on whether other verticals can close their gaps before the next wave of IPOs. If non-BFSI segments fail to turn profitable, the 40% market share projection may face headwinds. Investors will scrutinize the quality of earnings behind the revenue growth.
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Looking ahead, the sector’s EBITDA is projected to reach between $5 billion and $10 billion by fiscal year 2031. This expansion in both size and bottom-line health is expected to provide a more robust foundation for public-market exits. It reduces the risk associated with listing unprofitable firms.
Private Capital and Alternative Exits
The IPO pipeline is not operating in isolation. Redseer notes that public and private market funding for new-age companies could reach around $50 billion annually by 2030. This total is supported by a projected doubling of private-market funding. The available dry powder from private equity and venture capital in India is estimated at about $20 billion.
Private funding patterns are also shifting toward larger, more selective deals. In the current year, approximately 30 funding rounds above $50 million accounted for roughly $5.5 billion. This represented about 70% of total funding. The BFSI, Technology-Media-Telecom (TMT), and Artificial Intelligence (AI) segments together represented 60-65% of the year-to-date deal value.
Beyond IPOs, Mergers and Acquisitions (M&A) are emerging as a key exit route. The report suggests that private capital could account for around 50% of primary exits among unlisted new-age consumer companies. IPOs might represent about 20%. Strategic M&A is projected to make up roughly 15% of these exits.
The M&A market itself is expected to grow significantly. Redseer anticipates it could become a $10 billion-plus annual market by 2030. This is up from an estimated $2.5 billion in 2026. This growth is driven by both traditional and new-age players acquiring businesses to gain access to technology, distribution networks, and specific capabilities.
