India’s IPO Valuation Reset, Perplexity’s India Dream, and GoBoult’s Legal Troubles

For years, India’s unlisted startup market worked like a mirage - valuations sparkled on paper, but when companies walked into public markets, the story changed. The “valuation reset” is now in full swing, and it is reshaping how founders, investors, and the ecosystem think about IPOs.

The reset became visible after 2021, when liquidity-fueled IPOs like Paytm, Zomato, and Nykaa went public at eye-watering valuations, only to see their stock prices crash 40-70% in the following year. Paytm’s $20B IPO in 2021 is now valued at less than half of that, while Zomato’s market cap fell by over 60% before recovering partially. The trigger was global too - the U.S. Federal Reserve’s interest rate hikes ended the “easy money” era, forcing investors to reprice risk. From 2022 onwards, both global and Indian IPO markets entered a correction phase, where the “growth at all costs” model no longer convinced investors.

In numbers, the average IPO oversubscription in India dropped sharply between 2021 and 2023, while post-listing performance turned negative for a majority of tech IPOs. Private valuations have also taken a hit - Indian unicorns saw a 15-30% markdown in secondary markets in 2023-24, with some like Byju’s facing far steeper collapses. Even profitable startups such as Mamaearth had to go public at much lower multiples than expected, reflecting the market’s tougher stance.

Global parallels tell the same story. In the U.S., companies like Instacart and Birkenstock listed in 2023 at valuations nearly 50% below their last private rounds. In Southeast Asia, Grab and GoTo saw their market caps shrink dramatically after going public. The common thread is clear: public markets don’t reward vanity metrics; they demand profitability, visibility on cash flows, and defensible market leadership.

What does this mean for India? The unlisted market’s once-lofty premiums now look unsustainable. The gap between private and public valuations is shrinking. For example, OYO’s IPO plans have been delayed repeatedly because public market appetite doesn’t support the $10B+ valuation it once commanded. Similarly, PharmEasy, once a $5.6B unicorn, had to raise capital at nearly 90% lower valuation, highlighting how ruthless the reset has been.

This isn’t entirely new - valuation mismatches have existed for years. But the pace of correction has accelerated since 2022 because of three big triggers: (1) the global shift away from cheap capital, (2) Indian regulators like SEBI cracking down on aggressive disclosures and lofty projections, and (3) domestic investors maturing, with retail and institutional players no longer willing to pay Silicon Valley-style multiples.

Looking ahead, a few outcomes are likely. First, we will see smaller, more conservative IPOs where companies go public only when they can show sustainable EBITDA margins, not just GMV growth. Second, consolidation may rise - weaker startups may become acquisition targets for larger players who are already public (e.g., a fintech like Paytm acquiring niche startups at distressed valuations). Third, the IPO market will increasingly favor “profitable unicorns” like Zoho or Zerodha-style firms rather than cash-burning giants. And finally, India may see the rise of dual-track exits - where founders look at both IPOs and private secondary sales to give liquidity to investors.

In short, the “valuation mirage” of the unlisted market is giving way to a more sober reality. The reset may look painful today, but in the long run, it could build a healthier pipeline of companies that actually deserve the valuations they claim.

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.

“Ab Hoga Dangal”: India Biggest Market For Perplexity, To Set Up Team In Country, Says CEO Aravind Srinivas

Perplexity’s CEO Aravind Srinivas just dropped a big reveal: India is now the startup’s largest user base, thanks in part to its tie-up with Airtel. Riding that wave, the AI-powered search company is setting up shop locally with plans for an engineering team in Bengaluru or Hyderabad.

And with a Perplexity fund on the horizon, it looks like India’s AI race is heating up alongside OpenAI and Anthropic’s own India moves.

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“Keh Diya Na Bas Keh Diya”: Bengaluru Court Restrains GoBoult From Using Brand Name

A Bengaluru court has hit pause on GoBoult, barring it from selling or advertising under that name after a clash with DPAC Ventures’ trademarked brand GoBold.

The judge found the two names deceptively similar, sparking concerns over brand confusion. To make things murkier, the plaintiff even accused Boult of tweaking search results so GoBold queries led to GoBoult products.

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“Suswagatam Suswagatam”: IPO-Bound boAt Names Gaurav Nayyar CEO

boAt is turning up the volume ahead of its IPO, naming COO-turned-CEO Gaurav Nayyar to steer the ship. A Bain & Company alum, Nayyar has been with the startup for three years and now takes charge as it gears up for its market debut.

With SEBI already clearing its confidential DRHP, the leadership shuffle signals boAt’s next phase of growth.

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“Humari Bhi Haan Hai”: Veefin Gets Board Nod To Merge Two Subsidiaries With Parent Entity

Veefin just got board approval to fold its two arms, GlobeTF and Estorifi, back into the parent entity. The merger is pitched as a way to cut costs, boost governance, and unlock more value for investors.

With promoter shareholding set to rise to 37.85%, the combined platform will now cover everything from transaction banking to SME working capital needs.

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“Guess Karo Hum Kahan Hai”: Eximius Ventures plants its flag in Bengaluru’s thriving startup ecosystem

Eximius Ventures has officially landed in Bengaluru, bolstering the city’s claim as India’s startup capital.

The Gurgaon-based pre-seed VC firm opened its new office last week, promising to work more closely with founders in fintech, AI, and consumer tech. The launch, co-hosted with Google Cloud and others, drew in founders and investors who called it a long-overdue move.

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“Haule Haule Dheere Dheere”: Infra.Market Files Confidential IPO Papers With SEBI

Infra.Market has quietly filed its IPO papers with SEBI, eyeing a ₹5,000 crore ($563 million) raise split between fresh issue and OFS.

The filing comes just weeks after its $83 million Series G round that pegged its valuation at $2.8 billion. Adding to its expansion spree, the unicorn also snapped up a majority stake in ceramic tiles maker Metro Group earlier this year.

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1. Ola Electric’s tech arm, Ola Electric Technologies, has secured board and shareholder nod to raise nearly $100 million via preference shares. The fresh capital is aimed at powering the EV maker’s next phase of growth.
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