The next cohort outperforms listed midcap peers in revenue growth and EBITDA profitability improvement in FY24
FinTech BizNews Service
Mumbai, April 2, 2025: The Rainmaker Group has launched the 2025 edition of The RainGauge Private Pulse, a definitive and dynamic tracker of India's most consequential venture capital-backed companies poised to go public over the next two years.
With 38 high-growth startups as part of the incoming cohort, valued collectively at over $100 billion, India's public markets are set to witness a transformative wave that could double the share of venture-backed companies to 4-5% of the nation's market capitalization and 5-7% of the free float. A fifth of BSE Midcap Index and a tenth of SENSEX can be VC backed startups in the next 3-5 years.
India's 38 VC-backed listed startups currently have a market cap of around $100 billion those tapped public markets in two waves in 2021 and 2024. The next set identified by RainGauge Private Pulse includes a diverse range of high-performing companies expected to reshape India's IPO playbook. This cohort is the largest by volume and value and the most resilient, with a robust pre-listing growth trajectory and a strong path to profitability.
More importantly, the next set to be listed over the 24 months also showcases the founders who have endured setbacks and effected a turnaround in their businesses, rendering themselves a better fit for public market scrutiny. RainGauge's interactions with the management of several companies suggest their appreciation for governance structures and transparent reports.
The RainGauge Private Pulse highlights how the next wave of startups (third wave) is fundamentally stronger than its predecessors. Unlike earlier IPO cycles, where companies were often priced to perfection or listed below expectations, the upcoming cohort appears better positioned to withstand public market scrutiny. Nearly two-thirds of these companies that have indicated IPO timelines are already profitable, two years ahead of their IPO, demonstrating operational discipline and sustainable growth.
The latest cohort also brings diversification beyond traditional tech. For the first time, non-software businesses built in India with global ambitions are preparing to go public alongside emerging sectors such as B2B marketplaces.
Commenting on the launch, Kashyap Chanchani, Managing Partner of The Rainmaker Group (TRMG), said, "India's public markets are poised for a significant transformation as a new wave of venture-backed startups prepare to rewrite the IPO playbook. This next wave isn't just chasing growth; they're building sustainable, global-ready businesses that put real value on the table. We expect this shift to significantly boost retail investor confidence in the long run and double the market cap contribution of VC-backed companies. I'm excited to see India's public markets become younger, faster-growing, and more reflective of India’s new economy."
The report further notes that the first wave of venture-backed IPOs delivered high growth but struggled with profitability, while the second wave corrected course with more measured valuations but mixed post-listing results. The incoming set has learned from both, focusing on delivering consistent, predictable performance in public markets, an essential shift as investor expectations rise.
According to the report, the success of these IPOs will ultimately hinge on two key factors:
• Public Market Mindset: Management teams must transition to a mindset prioritizing predictability and consistency over pure growth ambitions.
• Valuation Realities: Companies must offer more value to attract long-term investors in an environment with constrained liquidity for pre-IPOs and new issues.
