Top global investors like SoftBank and KKR have sold shares worth nearly Rs. 18,000 crore in new-age Indian startups after IPO lock-in periods ended, marking a major shift in how investors exit new-age companies.
The major cash-outs came from startups that went public last year, including Groww, Lenskart, Ather Energy, Meesho, Urban Company, Pine Labs, and Bluestone. Through follow-on block and bulk deals over the past eight months, these investors realized Rs. 17,759 crore in sales. In addition, startup investors sold another Rs. 11,700 crore worth of shares through offer-for-sale (OFS) components during the IPOs themselves.
Lenskart led the exits with over Rs. 10,000 crore worth of shares sold post-IPO, while Groww followed with over Rs. 5,500 crore. Early investors scored massive returns: Peak XV Partners got a 97x return on Groww, Ribbit Capital made 80x, and Y Combinator earned 53x.
Even after these exits, global investors continue to collectively hold stock worth more than Rs. 1.18 lakh crore in these companies, showing they remain confident in India’s startup ecosystem.
This trend signals that India’s IPO market is maturing, offering investors better ways to cash out gradually rather than all at once. The easing of mandatory holding periods post-listing has enabled these staggered exit strategies.
FAQs [Frequently Asked Questions]
Q1: Why are startup investors selling shares now?
IPO lock-in periods have ended, allowing investors like SoftBank and KKR to sell shares through follow-on block deals after the mandatory holding period was eased.
Q2: Which startups saw the biggest investor exits?
Lenskart led with over Rs 10,000 crore in post-IPO sales, followed by Groww with Rs 5,500 crore, among startups like Ather, Meesho, and Urban Company.
Q3: Do investors still hold shares after selling?
Yes, investors still collectively hold over Rs 1.18 lakh crore in these companies, showing continued confidence in India’s startup ecosystem despite cashing out portions.