In 2025, a big change is happening in the Indian stock market. Many startup companies are coming with their IPOs (Initial Public Offerings). This is becoming a hot topic among new investors and youth. People now want to invest in new-age startups like fintech, e-commerce, EV, tech, and health startups instead of only old companies.
This new wave is showing how people are now trusting fresh ideas and young companies more than ever before. Investing in Startup IPOs is now seen as a good way to make high returns and become part of India’s growth story.
In this blog, we will talk about how startup IPOs work, why they are becoming so popular, and what you should know before investing in them.
What is a Startup IPO?
IPO means Initial Public Offering. It is the first time a company sells its shares to the public. Startups, after reaching some growth level, launch IPO to raise more money from public investors.
When you invest in an IPO, you are buying some shares of that company. If the company does well in future, your share price also grows and you can earn good profit.
Why Startup IPOs are Trending in India
There are many reasons why investing in startup IPOs is becoming popular:
1. High Growth Potential
Startups grow fast. So their share value can also increase quickly. People who invest early can earn big profits in a few years.
2. New Age Sectors
Startups work in modern industries like fintech, electric vehicles, online shopping, AI, etc. These sectors are booming in India.
3. Youth Connection
Young investors feel connected to companies like Zomato, Paytm, Mamaearth, and Nykaa. They use these services and also want to invest in them.
4. Easy Access to IPOs
Now with apps like Zerodha, Groww, Upstox, you can apply for IPOs from your phone. UPI makes payment easy.
Top Startup IPOs that Gained Attention
Some startup IPOs in the last few years created a huge buzz in the market. Some performed well, some didn’t, but they all showed how IPOs are getting popular.
- Zomato – First big tech startup to launch an IPO. Raised huge money.
- Nykaa – Beauty startup IPO became famous for huge listing gains.
- Paytm – Faced a fall after IPO but still very talked-about listing.
- Mamaearth – Recent IPO with strong brand among youth.
Things to Know Before Investing in Startup IPOs
Investing in an IPO is exciting but you should be careful. Startups are new, and not all IPOs give good results. Some fail too.
1. Check Company’s Profit
Many startups are not profitable. They are growing but not earning. Read their financial reports before applying for an IPO.
2. Read the DRHP
DRHP means Draft Red Herring Prospectus. It has all the company info. You can check it on SEBI website.
3. Long Term Thinking
IPO may give you a listing gain, but real profit comes if you stay for a long time and the company grows well.
4. Compare with Other Startups
Don’t just follow hype. Compared with other companies in the same field. See which has a better plan and future.
Pros of Investing in Startup IPOs
- Can give high return in future
- Entry at early stage
- Good for long-term investors
- You become part-owner of new-age brand
Cons of Startup IPOs
- Some IPOs over-priced
- Risk of startup failure
- No past records to compare
- Can be very volatile in stock market
How to Apply for a Startup IPO
- Open demat account on apps like Zerodha, Groww, Upstox, Angel One.
- Link your UPI ID with the app.
- Go to the IPO section and choose the startup IPO.
- Enter lot size and apply.
- Wait for allotment. If allotted, shares will come to your demat on listing day.
Future of Startup IPOs in India
In 2025 and coming years, more startups will go public. The government is also supporting the startup ecosystem in India. Sectors like EV, green energy, AI, fintech, edtech will see many IPOs.
Investors now prefer top investment options in India that are modern and future-focused. That’s why startups are gaining attention.
Even small investors can now be part of India’s tech growth by buying shares of startups through IPO.
But always remember, IPOs are risky. So don’t invest blindly. Read carefully, study company, and invest only what you can risk.
FAQs
Q1. Is investing in startup IPOs safe?
Ans. Not always. It has risks. Some startups do well, others don’t. You should study before investing. Don’t trust only hype.
Q2. Can I invest in an IPO using UPI?
Ans. Yes. Now IPO applications are very easy with UPI. All stock apps allow it.
Q3. Which are the best investment options in India in 2025?
Ans. Mutual funds, PPF, digital gold, and investing in startup IPOs are some safe and high return investments in India.
Q4. Do all IPOs give profit on listing day?
Ans. No. Some IPOs open below their price. Profit is not sure. Long term hold may give better return.
Q5. How to know if a startup is good for IPO investment?
Ans. Check DRHP, company revenue, profit, founders, and future business model. Compared with others in the same sector.
Conclusion
Investing in startup IPOs is surely a new-age trend in India. It gives you a chance to become an early investor in brands you use every day. But with big reward comes risk too.
Don’t rush. Learn the basics. See the company’s background. And only invest if you believe in the startup’s growth story.
With the right knowledge and patience, you can make IPO investing a smart part of your journey toward financial success in 2025.
I am a digital marketing executive as well as content writer in the personal finance and investment related blogs. My goal is to provide simple, interesting and reliable information to readers through my articles so that they always stay updated with the world of personal finance and investment.
