India’s Exit-Led IPOs, Graphcore’s Investment, and Bombay HC’s Order

India’s IPO market is having a record year by volume, but the story beneath the ticker is changing: listings are becoming less about fueling the next phase of growth and more about giving early shareholders a way out. You can see it in the mix. In 2025, 63.2% of IPO proceeds came from Offer for Sale (OFS) components - ₹33,016 crore cashed out by existing holders versus only ₹19,197 crore of fresh money raised across 28 IPOs. That’s a three-year high and a sharp break from the old norm where primary capital dominated. Between 2020 and 2025, Indian IPOs raised over ₹4.66 lakh crore; nearly two-thirds of that was OFS, with the 2020 peak hitting an unprecedented 87% as investors rushed for liquidity.

This shift is now out in the open because the courts are looking at it too. The Bombay High Court is weighing a petition that challenges WeWork India’s ₹3,000 crore IPO for being a pure OFS - zero fresh capital for the company - arguing it was an “exit route at the cost of retail investors.” Whether the bench forces changes or not, the signal is clear: when exit-heavy structures meet governance questions, expect judicial pushback. In India, that scrutiny lands harder than in many markets. Globally, continuation vehicles (CVs) and secondaries are treated as legitimate tools, but here an OFS-heavy listing triggers public friction - especially if promoter disclosures are messy. India trades at a valuation premium (PE ~22) to peers like China (~9.66), and maintaining that premium means the listing process must look like growth capital mobilization, not just a cash-out.

If IPOs feel more like exits, it’s because the entire liquidity stack has been rewired. Secondary transactions in India’s private markets could touch $20 billion annually as 2014-15 vintage funds hit end-of-life, IPO timelines stretch beyond a decade, and dedicated secondary infrastructure emerges. Continuation funds and targeted ESOP liquidity pools - Hissa’s $35 million vehicle, ChrysCapital’s $700 million CV for its NSE stake - are no longer side shows; they’re the plan. ESOP secondaries underline the change on the ground: Swiggy’s fifth program ($65 million), Urban Company’s ₹203 crore sale, Meesho’s ₹200 crore buyback. Structured, recurring liquidity has become an HR weapon as much as a cap-table tool.

The regulator is catching up to this reality. SEBI has already capped promoter OFS at 20% in SME listings; the large-cap, loss-making tech cohort still has no mandatory OFS limit, which creates room for “exit-only” IPOs. A proportional cap - say, 30-40% for issuers under Regulation 6(2) without a profit track record - would bring the big-ticket tech names in line with investor-protection logic SEBI already applies elsewhere. The market would also benefit from a minimum primary-proceeds requirement linked to the “Objects of the Issue” (CapEx, R&D, or debt reduction over the next 18 months) and tougher, standardized disclosures on promoter litigation and related-party liabilities.

Meanwhile, the demand side of the market has never looked sturdier at home. Roughly three-quarters of IPO funding now comes from domestic sources, with monthly SIP flows near ₹28,464 crore. India hosted twice as many IPOs as the US and 2.5x Europe in 2025; NSE led the world by funds raised - even as FPIs pulled out over ₹83,000 crore since July. The message: domestic institutions are strong enough to keep the window open, but they will also insist on cleaner structures and sharper pricing.

For founders and VCs, signaling now matters as much as structure. A balanced 50:50 primary:OFS split can both fund the roadmap and provide a measured exit, especially for profitable or near-profitable issuers, while a high OFS in a loss-making name requires extreme transparency to avoid “they’re heading for the door” optics. LPs, for their part, are now diligencing funds on “Active Liquidity Management” - do you plan secondary pathways and public exits years in advance, or are you improvising at listing time? In today’s market, that’s a track record question, not a deck slide.

Global parallels help explain the moment. The US and Europe normalized continuation vehicles and secondaries years ago; India is catching up fast, but with sharper public accountability. That’s not a bug. It’s how you protect a premium. With India trading richer than many emerging peers, the market has to show that IPOs are not a one-way door for insiders. The premium survives when the listing is seen as a growth event first and an exit second.

So where do we go from here? Founders and bankers should assume the “liquidity over growth” debate will live inside every roadshow Q&A. If you need secondary, say why - ESOP liquidity and fund-life constraints are legitimate - and show conviction. If your story needs primary capital, tie the rupees to near-term CapEx, R&D, or debt reduction in measurable ways. And if you’re loss-making, expect questions on why your OFS is large at all.

India’s listing machine is strong, domestic buyers are deep, and the pipeline is full. The reset isn’t a setback; it’s a correction that rewards cleaner stories and real cash needs.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Swagat Nahi Karoge Humara”: SoftBank’s Graphcore To Invest $1.2 Bn In India, Set Up Campus In Bengaluru

SoftBank-backed semiconductor firm Graphcore is making a big India bet with a $1.2 billion investment over the next decade.

The UK-based chipmaker will set up an AI engineering campus in Bengaluru, creating around 500 high-end semiconductor jobs. The campus aims to power the next wave of AI computing, from drug discovery to sustainability, right from India’s silicon heartland.

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“Thamba Thamba”: Bombay HC Reserves Order On Plea Challenging WeWork India IPO

The Bombay High Court has reserved its order on a plea challenging WeWork India’s upcoming IPO. The petitioner argued that the company failed to disclose criminal cases against its promoters, raising concerns over investor protection.

Meanwhile, the coworking giant’s ₹3,000 crore public issue saw a modest 1.15X subscription and is set to list on October 10.

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“Hum Saath Saath Hai”: PayU Finance and Swiggy Partner to launch embedded credit for restaurants

Swiggy has teamed up with PayU Finance to roll out embedded credit solutions for its restaurant partners.

Starting next fiscal year, eateries will be able to access unsecured loans of up to ₹25 lakh with flexible weekly repayments and no foreclosure charges. The partnership targets ₹300 crore in disbursements next year and a whopping ₹1,000 crore within three years.

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“Style Mein Rehne Ka”: Lenskart to launch smartglasses with built-in UPI payment feature

Lenskart is taking wearable tech up a notch with its new B Camera Smartglasses that let you make UPI payments hands-free. Unveiled at the Global Fintech Festival 2025, the glasses combine AI-powered cameras with secure voice-authenticated transactions.

Built in partnership with NPCI’s UPI Circle, they aim to turn every glance and command into a seamless payment experience.

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1. Craft beer maker Bira 91 is in talks with Global Emerging Markets (GEM) to raise $132 million for its business revival. The funds will help the company restructure its sales and supply chain as it looks to bounce back stronger.
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2. Equity management platform Qapita has raised $26.5 million in a Series B round led by Charles Schwab Corporation. The startup plans to expand into the US, roll out new digital products, and scale its fund administration platform for global markets.
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3. Travel tech platform ixigo is set to evaluate a fresh fundraise through QIP, preferential issue, or other routes. The company has also received interest from a potential investor looking to acquire up to a 16% stake via secondary transactions.
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4. EV startup Hala Mobility has raised ₹30 crore to expand its fleet under the community-driven Hala+ FOCO model. The company plans to deploy 6,000 electric vehicles across Indian cities, empowering self-help groups and micro-entrepreneurs to run local EV clusters.
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5. Deeptech startup UGX.ai has raised $1 million in seed funding to scale its smart MES solutions for discrete manufacturing. The platform integrates hardware, middleware, and software to enhance connectivity, monitoring, and quality control across factories.
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6. Reo.Dev has raised $4 million in a seed round led by Heavybit to expand its developer-first intent platform. The platform helps devtool companies turn developer activity into actionable insights, already serving over 100 developer-focused clients.
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