VCs bagged almost $2B from IPO exits last year
What's the story
Venture capital (VC) investors recorded nearly $2 billion in initial public offering (IPO) exits in 2025, Bain Capital's India Capital Venture Report 2026 revealed. The report noted that eight major VC-backed listings were the main contributors to this liquidity. The surge comes as private funding has slowed down, with start-up funding declining by over 10% year-on-year in FY26 due to a slowdown in late-stage rounds.
Market dynamics
Public markets become major liquidity source
The report highlights that public markets have emerged as a major source of liquidity, with start-up listings unlocking over ₹40,000 crore in liquidity. This comes as companies increasingly turn to public markets for both capital and investor exits. Notably, the Bain-IVCA data shows a stark concentration in exit outcomes within this listing surge.
Exit concentration
Concentration in exit outcomes
In 2025, IPOs over $100 million contributed nearly 90% of the total VC exit value, up from about 70% in the previous year. Smaller exits under $100 million accounted for around 10%, showing a limited access to public markets for mid-sized start-ups. Overall, VC-backed public market exits stood at about $7 billion, mostly unchanged year-on-year. This indicates that a handful of large listings drove most of the value.
Top performers
Top contributors to investor liquidity
Among the largest contributors to investor liquidity were Groww, which delivered roughly $670 million in exits, followed by Lenskart at around $475 million. Others include Dr. Agarwal's Healthcare at $255 million, Urban Company at almost $170 million, and Pine Labs at close to $165 million. A handful of large listings drove most of the value, indicating a concentration of returns among select funds backing late-stage companies.
Exit share
VC-backed exits through public markets
The share of VC-backed exits through public markets rose to 28% in 2025 from 22% in 2024. This shows that while IPOs are becoming an important way for liquidity, the market remains selective and tilted toward firms with scale, market leadership, and clearer profitability trajectories.