Investors in initial public offerings (IPOs) of new-age tech companies have earned just 36% average returns, and only 32% of those who invested after listing have made gains, according to a report by advisory firm Client Associates.
Titled The New-Age IPO Performance Analysis, the report examined 25 new-age tech IPOs launched between May 2020 and June 2025 across sectors including fintech, logistics, consumer internet, and software-as-a-service (SaaS). It assessed investor returns at three stages, pre-IPO, IPO, and post-IPO, using the BSE 500 as a benchmark.
Mixed outcomes
Startups like Ixigo and Zaggle delivered strong pre-IPO returns of 89.21% and 62.47%, respectively, while Ola Electric posted a 60.13% loss in the same phase. Overall, pre-IPO investments generated average returns of 43%, outperforming IPO and post-IPO investments.
“This assessment tells you that most prices have been driven by frenzy rather than business fundamentals,” said Shashank Agarwal, associate director at Client Associates. “Unless you’re an institutional investor, most retail investors chase market noise.”
While companies such as Zomato and PolicyBazaar have fared better, others including Paytm, Ola Electric, and Mobikwik have significantly underperformed. The report argued that hype and narrative, rather than strong fundamentals, have driven most retail participation.
IPO wave
In 2024 alone, 13 new-age tech companies went public, raising close to Rs 29,070 crore.
The list includes Swiggy, Go Digit, TBO Tek, Awfis, Ola Electric, FirstCry, Ixigo, and Unicommerce. The surge in tech-led IPOs has been fuelled by digital adoption, favourable demographics, and strong capital inflows, a shift from earlier IPO waves dominated by industrial and BFSI players.
The compounded annual growth rate (CAGR) of companies listed on the Bombay Stock Exchange rose 121% between September 2021 and May 2025, compared with just 37% for those listed on the National Stock Exchange. Investors in BSE-listed shares earned 84% more annually than those holding NSE’s unlisted shares over the past four years.
Agarwal said BSE’s listed status gives investors confidence, while NSE’s IPO delays and regulatory challenges have made investors more cautious. Despite this, retail investors are actively buying unlisted shares of market infrastructure firms such as NSE and the National Securities Depository Limited (NSDL), even though these are illiquid and hard to trade.
Unlisted vs listed returns
Over the last four years, NSE’s unlisted shares have returned 37%, while listed rival BSE surged 194%. Similarly, NSDL’s unlisted shares gained 35% compared with a 69% return from listed competitor CDSL. The report concluded that while pre-IPO investments in select new-age companies have delivered strong returns, the IPO and post-IPO phases have been far less rewarding for most retail investors. It cautioned that chasing hype without assessing business fundamentals exposes investors to significant downside risk.
Titled The New-Age IPO Performance Analysis, the report examined 25 new-age tech IPOs launched between May 2020 and June 2025 across sectors including fintech, logistics, consumer internet, and software-as-a-service (SaaS). It assessed investor returns at three stages, pre-IPO, IPO, and post-IPO, using the BSE 500 as a benchmark.
Mixed outcomes
Startups like Ixigo and Zaggle delivered strong pre-IPO returns of 89.21% and 62.47%, respectively, while Ola Electric posted a 60.13% loss in the same phase. Overall, pre-IPO investments generated average returns of 43%, outperforming IPO and post-IPO investments.
“This assessment tells you that most prices have been driven by frenzy rather than business fundamentals,” said Shashank Agarwal, associate director at Client Associates. “Unless you’re an institutional investor, most retail investors chase market noise.”
While companies such as Zomato and PolicyBazaar have fared better, others including Paytm, Ola Electric, and Mobikwik have significantly underperformed. The report argued that hype and narrative, rather than strong fundamentals, have driven most retail participation.
IPO wave
In 2024 alone, 13 new-age tech companies went public, raising close to Rs 29,070 crore.
The list includes Swiggy, Go Digit, TBO Tek, Awfis, Ola Electric, FirstCry, Ixigo, and Unicommerce. The surge in tech-led IPOs has been fuelled by digital adoption, favourable demographics, and strong capital inflows, a shift from earlier IPO waves dominated by industrial and BFSI players.
The compounded annual growth rate (CAGR) of companies listed on the Bombay Stock Exchange rose 121% between September 2021 and May 2025, compared with just 37% for those listed on the National Stock Exchange. Investors in BSE-listed shares earned 84% more annually than those holding NSE’s unlisted shares over the past four years.
Agarwal said BSE’s listed status gives investors confidence, while NSE’s IPO delays and regulatory challenges have made investors more cautious. Despite this, retail investors are actively buying unlisted shares of market infrastructure firms such as NSE and the National Securities Depository Limited (NSDL), even though these are illiquid and hard to trade.
Unlisted vs listed returns
Over the last four years, NSE’s unlisted shares have returned 37%, while listed rival BSE surged 194%. Similarly, NSDL’s unlisted shares gained 35% compared with a 69% return from listed competitor CDSL. The report concluded that while pre-IPO investments in select new-age companies have delivered strong returns, the IPO and post-IPO phases have been far less rewarding for most retail investors. It cautioned that chasing hype without assessing business fundamentals exposes investors to significant downside risk.
