WAITING FOR THE IPO WINDFALL

LIGHTSPEED HAS QUIETLY EVOLVED ALONG WITH INDIA'S START-UP STORY, ARMED WITH A $2.3 BILLION PLAYBOOK. NOW, IT AWAITS THE ULTIMATE PRIZE: A MARKET-DEFINING IPO

- BY PALAK AGARWAL

WHAT DO HOTEL-room aggregator OYO, educational platform PhysicsWallah, quick-commerce delivery firm Zepto and payments company Razorpay have in common?

For one thing, they all operate in internet businesses they have disrupted in more ways than one, and for another, they share a common backer in Venture Capital (VC) firm Lightspeed India, which has funded them all and is now looking forward to a key milestone: the first initial share sale by a portfolio firm.

An initial public offering (IPO) by a protégé is the one milestone that has eluded Lightspeed India Partners, the local unit of Silicon Valley-based Lightspeed Venture Partners. Of course, its parent shepherded the 2017 IPO of Indian Energy Exchange (IEX).

Lightspeed India may fill that gap in its otherwise impressive resume in 2026, when a string of its portfolio firms—PhysicsWallah, OYO, and contract manufacturer Zetwerk—gear up for public listings.

Make no mistake. The IPO is very important to Lightspeed India. As the Indian start-up ecosystem matures, the true test for a VC firm lies not just in spotting winners, but in finding meaningful exits at the right time.

"IPO timelines are not in Lightspeed's control, but we could see a few portfolio companies go public in 2016-27," says an industry expert who doesn't want to be named. "The firm is well-positioned with its portfolio. Ultimately, blockbuster IPOs are shaped by market cycles and are long-term events."

Peers such as Accel and Prosus are among the top venture capitalists that have taken their firms public.

TECHNOLOGY IS THE FUTURE

Bejul Somaia, Senior Leader at Lightspeed Venture Partners and Partner, Global, swears by the future of technology in India. After all, the portfolio companies mentioned above have technology at the heart of their existence, whatever be the end product they are selling.