Pre IPO investment refers to investing in a private company before its initial public offering (IPO). This allows investors to get shares at a lower valuation compared to the IPO price. India has seen a surge in pre IPO deals in recent years, especially in new economy startups. The Indian government has also introduced reforms to encourage more pre IPO activity.
Large funding rounds in major Indian startups
Many Indian unicorns and leading startups like Paytm, Nykaa, Delhivery have raised billions of dollars in pre IPO rounds from marquee investors. The valuations reach billions of dollars even before IPO. This shows the growth potential of top Indian tech startups.
Recent policy changes to boost pre IPO deals
Indian policymakers have made key changes to listing norms for startups looking to go public. The reforms are aimed at helping more high-growth tech companies access public markets through transparent pre IPO rounds. This will give a boost to the pre IPO investment ecosystem.
Rise of dedicated pre IPO funds
Many venture capital and private equity funds in India now have dedicated vehicles to invest in pre IPO rounds of tech startups. Funds like India Quotient, Waterbridge Ventures are sector-agnostic while others like GrowX focus specifically on consumer internet and software companies going public.
Pre IPO investing is gaining significant traction among investors looking to get early access to Indian startups with massive growth potential. With favorable regulatory changes and rise of dedicated pre IPO funds, more capital is expected to flow into this high-upside asset class.