Start-Up IPO Investors See 36% Gains; Most Post-Listing Buyers Miss Out on Profits

Investors in IPOs of new-age tech companies have earned nearly 36% returns, and only 32% of those who bought shares after listing have made gains, according to a report titled ‘The New-Age IPO Performance Analysis’ shared by advisory firm Client Associates.

The company examined 25 new-age tech IPOs launched between May 2020 and June 2025 across sectors, such as fintech, logistics, SaaS (software-as-a-service), and consumer internet, The Economic Times reported.

It measures investor returns at three stages, pre-IPO, IPO, and post-IPO, using the BSE 500 as a benchmark.  At pre-IPO stage, start-ups generated average returns of 43%. However, IPO and post-IPO investments could not generate such returns for investors, the report said.

For instance, Ixigo and Zaggle delivered over 89% and 62% returns, respectively at pre-IPO level. In addition, Zomato and PolicyBazaar also showed positive numbers. On the other hand, EV maker Ola Electric reported more than 60% loss in the same phase. Similarly, Paytm, and Mobikwik also significantly underperformed.

Unicorns Often Fail Litmus Test on D-St

Outlook Business has earlier reported that many new-age companies do not even take five years to surpass the $1 billion valuation, and those ventures have seen sharp market corrections post-IPO.

For example, food delivery giant Swiggy which was founded in 2014 took only four years to get the unicorn crown. In November 2024, the company launched its IPO and got listed at ₹420 a piece on the National Stock Exchange. However, today, its share price has dropped to ₹400 on the Bombay Stock Exchange.

Similarly, logistics firm Delhivery which hit the unicorn status in eight years, is trading nearly 50% below its IPO price. The company was listed at ₹495 per share when the supply chain platform launched its IPO in 2022. Today, its share price stands at ₹463 on the bourses.

Other companies like Paytm, Nykaa, Ola Electric, First Cry, and Mamaearth-parent Honasa Consumer have enjoyed sky-high valuation in private markets. But their valuations also tumbled after making debut on the stock market.