New-age companies in India are poised to become a dominant force in the country's public markets, projected to account for approximately 40% of all IPO proceeds by 2030. This forecast comes from a recent report by Redseer Strategy Consultants, highlighting a significant shift in India's capital landscape.
The report estimates that India's total IPO proceeds could reach an impressive $40 billion by calendar year 2030. Of this, new-age firms are expected to contribute around $15 billion, a substantial increase from their current estimated share of 25%.
Scaling Revenue and Profitability Fuels Growth
This projected surge in public market fundraising coincides with an anticipated rapid expansion of India’s new-age economy. Redseer projects the combined revenue of these innovative companies to nearly triple, escalating from approximately $100 billion in fiscal year 2026 to almost $300 billion by fiscal year 2031.
Furthermore, the sector's profitability is also on an upward trajectory. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for new-age companies are expected to grow to between $5 billion and $10 billion by FY31. This expansion in both scale and profitability will significantly enlarge the pool of companies capable of pursuing successful public market exits.
Signs of improving profitability are already evident across the broader new-age economy. Combined EBITDA shifted from a $4.8 billion loss in FY23 to a $1.4 billion profit in FY25. However, this improvement remains heavily concentrated within the BFSI (Banking, Financial Services, and Insurance) sector, which accounted for approximately 140% of the FY25 profit pool, indicating other sectors collectively still faced losses.
Expanding Private Capital and M&A Opportunities
The growing IPO pipeline is expected to be complemented by a substantial increase in private market funding. Redseer anticipates that public and private market funding for new-age companies could reach around $50 billion annually by CY30, underpinned by a projected doubling of private market funding.
The Indian ecosystem currently holds about $20 billion in private equity and venture capital 'dry powder' (committed but unallocated capital). Private funding trends already show a preference for larger, more selective deals, with around 30 funding rounds exceeding $50 million accounting for roughly 70% of total funding in the year so far. BFSI, Technology, Media, and Telecom (TMT), and Artificial Intelligence (AI) collectively represented 60-65% of year-to-date deal value.
Beyond IPOs, mergers and acquisitions (M&A) are also emerging as a critical exit route for scaled new-age companies. Redseer's analysis suggests M&A could evolve into a market exceeding $10 billion annually by CY30, up from an estimated $2.5 billion in CY26. This growth is driven by both traditional companies and new-age players increasingly acquiring businesses for strategic growth, technology integration, distribution expansion, and capability enhancement.
Redseer’s projections point to a maturing new-age ecosystem in which greater scale, improving profitability and multiple exit routes could make these companies an increasingly important part of India’s capital markets.