Building a business might look easy on paper, but reality differs a lot. Founders face countless hurdles, from product-market fit to team management, but the biggest and most common of them all is running out of money. Every day we hear about startups raising millions. But eventually, many of them take the next big leap, which is an IPO. Getting listed on the stock market is seen as the ultimate milestone, but what happens after that? Survival is not sure; there will be numerous challenges thereafter.
More than 39 startups have gone public in recent years, each navigating through bull runs, bear markets, and stagnant slowdowns. But what do the numbers actually tell us? That’s where the Rainmaker Group’s new report, RainGauge Private Pulse, First Edition, comes in. In this article, we go deep into the data and insights the report offers. Because these days we are witnessing new-age startups filing DRHPs every other week, understanding what lies ahead post-listing is not just important, it’s essential.
The RainGauge Private Pulse report takes a close look at India’s most promising startups that have either just gone public or are getting ready to launch their IPOs. It tries to answer an important question: What can these new startups learn from the IPO journeys of those who came before them?
By studying the performance of 39 listed startups across 8 different sectors like online platforms, fintech, electric vehicles (EVs), and software. The report reveals patterns, challenges, and opportunities that could shape the next wave of ₹100 billion success stories. When the companies get listed in the market, no one knows what happens next. In this regard, we as startup enthusiasts should understand how the markets react and what the different phases can be.
In the last few years, startup IPOs in India have gone through four major phases. In 2021–22, there was a lot of excitement. Many startups raised big money and got listed at very high valuations. Companies like Zomato, Paytm, and others have listed during these scenarios. But in 2022–23, things changed. Stock prices of many startups dropped sharply, and people started asking serious questions about how these companies would make profits. Even if we look back in time, Paytm has fallen almost more than 70% of its IPO price, and even Zomato also fell drastically during this period.
Then came 2023–24, when investors began focusing more on solid numbers and real performance. Companies that showed good results and profitability started doing better. Now, in 2024–25, the mood is more cautious. Investors are picking only those startups that have strong, sustainable business models.
Now markets are no longer getting impressed by just big ideas. Markets want real growth and profits. The RainGauge Index, which tracks 39 listed startups, went up by about 6% this year. That’s better than the Nifty 50 and BSE Midcap, though it didn’t do as well as the Nasdaq. This clearly shows that the market is becoming more mature, and now, only startups that are truly performing are being rewarded.
And now if we dig even deeper with the data, it also reveals even better insights. Since January 2023, the RainGauge Index (RGI) has grown by an impressive 98%, beating both the Nifty 50 and BSE MidCap indices during the same period (Source: RainGauge Private Pulse, FY25 Edition). This shows that despite all the ups and downs, India’s new-age startups have delivered strong overall returns. But when we look closer, the performance was not the same across all companies.
Some did really well, like CarTrade, which jumped 133% after successfully integrating OLX’s India business and showing strong profits. PolicyBazaar also gained investor confidence by reporting its first-ever full-year profit along with steady growth. Zomato maintained high revenue growth but was slowed down by heavy losses in its quick-commerce arm, Blinkit. On the other hand, more than half of the startups in the index actually ended the year with losses. It shows that not all companies benefited equally from the market recovery.
This mixed performance highlights how public investors are now rewarding only those startups that show clear signs of profitability and business strength. For instance, Ola and other such players who are still reporting losses have seen a drastic fall in their shares from their listing prices.
To understand the clear picture of startups that get listed. The RainGauge report groups startups into four clear types based on two things: how fast they grow and how profitable they are:
- Stars that are growing fast and becoming profitable. The best examples of stars are PolicyBazaar and CarTrade. These are the strongest startups. They are scaling quickly and improving profits.
- Aggressive Growers are companies with fast growth but still losing money, such as Swiggy. They are growing big, but their business isn’t profitable yet.
- Efficient Operators are companies that are not growing much but are already profitable. Example companies like Five Star Finance. These startups run steady businesses with good profits, even without fast growth.
- Strugglers are companies with slow growth and still making losses. Ola Electric is an example of this type. These companies are under pressure, and they need to fix both growth and profitability.
So, in short, today’s market rewards startups that grow and make money. Just having one of the two is no longer enough.
So, what’s the biggest lesson here? If you’re building a startup and dreaming of an IPO, remember it’s not just about growing fast. Your business must also have a clear path to profitability. Investors today are smarter and more selective. They’re not just buying into stories; they’re looking for numbers that add up. The RainGauge report makes it clear: you can’t choose between growth and profits anymore; you need both.
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