Peak XV’s Bhatnagar warns that not all startups are IPO-ready, emphasising the need for clear profitability roadmaps and business predictability
Currently at 3% of public markets, Indian startups have room to grow, with several companies already crossing $10 Bn market cap and potential to reach $50 Bn
Focus should be on building enduring institutions rather than quick exits, with Bhatnagar favouring founders who aim to create sustainable public companies
Amid the ongoing boom in the new-age tech IPOs in the country, Peak XV Partner’s managing director Mohit Bhatnagar has said that public markets demand high standards which not all startups can meet.
Speaking at the India Digital Summit 2025, Bhatnagar said, “Not every company deserves to go public. There is a high bar for a public company.”
He outlined two critical requirements for IPO-bound startups – profitability or at least a well-spelled out path to profitability, and predictability of business to give forward guidance.
It is pertinent to note that 13 new-age tech companiesincluding Swiggy, MobiKwik, Ola Electric, among others, listed on the bourses in 2024, while more than 20 such companies are expected to go public this year.
However, Bhatnagar voiced concerns about younger companies rushing to market, particularly those with revenue of $100 Mn or less. While they might find initial success through support from investment, he warned that these companies risk facing an illiquid stock post-listing.
Overall, the Peak XV MD is optimistic about startup listings. He said that while startups currently account for only “about 3% of the Indian public markets”, this figure “will reach double digits on the back of all these very interesting companies” going public.
Bhatnagar said that a few Indian new-age tech companies like Zomato, Swiggy, Info Edge, and PB Fintech, and MakeMyTrip already have a market capitalisation of over $10 Bn and they will soon go past the $50 Bn mark and beyond.
For founders contemplating taking the public route, Bhatnagar stressed the importance of building enduring institutions rather than seeking quick exits. “Someone who is building a company to flip it for M&A is probably not as attractive as someone who says I want to one day go public,” he said, adding that going public allows founders “to dream of a company that endures, that outlasts you”.
The comments come days after Snapdeal cofounder Kunal Bahl told Inc42 that he envisions 2,500 listed startups in the country by 2050.
Comments are closed.