New-age firms could account for 40% of India’s IPO proceeds by 2030: Report

India’s new-age companies could account for around 40% of the country’s IPO proceeds by 2030, as the sector scales up in revenue, profitability and the number of companies capable of accessing public markets, according to a Redseer Strategy Consultants report.

The report estimates that India’s overall IPO proceeds could reach about $40 billion in CY30, of which new-age companies could contribute around $15 billion. This would represent a significant increase from their estimated 25% share of IPO proceeds currently.

New-age economy set for rapid expansion

The projected increase in public-market fundraising comes as India’s new-age economy is expected to expand sharply. Redseer estimates that the combined revenue of new-age companies will rise from around $100 billion in FY26 to nearly $300 billion by FY31, effectively tripling over the period.

The sector’s EBITDA is also projected to increase to $5-10 billion by FY31, from current levels. The consulting firm said this expansion in scale and profitability would provide a larger pool of companies capable of pursuing public-market exits.

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The broader new-age economy is already showing signs of improving profitability. Combined EBITDA swung from a $4.8-billion loss in FY23 to a $1.4-billion profit in FY25, although the improvement remains heavily concentrated in BFSI. Redseer noted that BFSI accounted for roughly 140% of the FY25 profit pool, meaning the other sectors collectively remained loss-making.

Private capital to nearly double

The growing IPO pipeline is expected to be accompanied by a significant expansion in private-market funding. Redseer estimates that public and private market funding for new-age companies could reach around $50 billion annually by CY30, supported by a doubling of private-market funding.

The report puts the private-equity and venture-capital dry powder available in the Indian ecosystem at about $20 billion.

Private funding is already showing a shift towards larger and more selective deals. Around 30 funding rounds above $50 million had accounted for roughly $5.5 billion, or about 70% of funding in the year so far, according to Redseer. BFSI, TMT and AI together accounted for 60-65% of year-to-date deal value.

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M&A to become another major exit route

While IPOs are expected to gain importance, Redseer sees multiple routes to value emerging for scaled new-age companies. Its analysis suggests that private capital could account for around 50% of primary exits among unlisted new-age consumer companies, while IPOs could account for about 20% and strategic M&A for roughly 15%.

M&A itself could become a $10-billion-plus annual market by CY30, compared with an estimated $2.5 billion in CY26, as traditional companies and new-age players increasingly acquire businesses for growth, technology, distribution and capabilities.

Redseer’s projections point to a maturing new-age ecosystem in which greater scale, improving profitability and multiple exit routes could make these companies an increasingly important part of India’s capital markets.

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