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IPO markets emerging as exit routes for startup investors amid evolving ecosystem

Economic TimesEconomic Times · 3d
IPO markets emerging as exit routes for startup investors amid evolving ecosystem

The Indian startup ecosystem has seen significant changes in recent years, with more opportunities for startups to access funding through public markets. This has resulted in increased exits for early investors and venture capital firms. In 2023, exit value in India reached $29 billion, with block trades accounting for half of the exits by value. MSME Initial Public Offerings (IPOs) and full-fledged IPOs have become attractive routes for liquidity and exits. The evolving market infrastructure and investor behavior are driving this trend, with potential for new exit models such as direct listings and Special Purpose Acquisition Companies (SPACs). Overall, the Indian public markets have performed well, attracting domestic investor participation.

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