PE, VC-backed startups hit decade-low age at listing

Greater business predictability, liquidity needs and enabling regulations are driving the shift

- Priyamvada C

Institutional investors encourage startups to adopt public-market discipline earlier, including stronger governance and audits.

(ISTOCKPHOTO)

India is increasingly seeing private equityand venture capital-backed startups tap the public markets at an early stage in their life-cycle, led by factors like greater predictability in business performance, liquidity needs and conducive regulatory policies, making IPOs an attractive option.

“In the past few years, public markets have become more willing to underwrite new business models. It increases confidence for sponsors to view IPOs (initial public offerings) as an attractive, viable exit option earlier in a company lifecycle,” said Gaurav Sood, managing director and head of equity capital markets of Avendus Capital. With institutional sponsors on the cap table, he said firms adopt public-market discipline earlier, including tighter audits, strong governance standards and sharp key performance indicator frameworks.

In its latest report, Blume Ventures said the median age for PE and VC players going public touched a decade-low of 12 years in 2025 from 17 years, a year earlier, and 8 years in 2015. In comparison, promoter-backed entities last year had a median age of 18 years for IPO from 22 years in 2024, shows data.