After years of underperformance in the private market, 2025 marked a turning point for India’s startup ecosystem in the public markets. While 2021 was a year for startups to innovate and scale, 2025 was about proving fundamentals. Over 18 startup IPOs were completed, collectively raising significant capital and giving investors a chance to participate in the country’s tech and innovation sector. Notable listings included Meesho, Grove, Lenskart, Zapfresh and Smartworks.
Investors’ Shift
The performance of listed internet and technology-first companies in India this year highlights a clear shift in investor preferences. Markets have shifted towards unit economics, margin improvement and category leadership. Companies that showed a credible path to profitability were rewarded, while those with capital-intensive models and unclear timelines had a rough time.
Top performing stocks
Ather Energy topped the leaderboard, emerging as the strongest startup stock of 2025. The EV maker’s shares rose nearly 132% year-to-date, driven by improved margins, disciplined cost control, and growing confidence in electric two-wheelers. Investors reacted positively to Ather’s progress toward scale without excessive cash flow.
Meesho, one of the most closely watched big IPOs of the year, is close behind. The stock has gained nearly 95% since listing, reflecting strong confidence in its unique social commerce model. Low customer acquisition costs, asset-light logistics and a greater focus on efficiency have helped Meesho stand out in the crowded e-commerce space.
Underperforming stocks
On the other end of the spectrum, Ola Electric has been a poor performer. High capital intensity, operational challenges and lingering questions about sustainable profitability have dented investor confidence. The stock’s decline underscores the extent to which public markets have become prone to execution errors. The company’s IPO issue price was ₹76 per share, with an initial listing price of ₹91, but the stock has struggled since then. At the end of December 2025, Ola Electric shares were trading at ₹34–₹35, well below the IPO and listing prices, suggesting a steep decline of around 60%–65% and a high loss.
Similarly, Brainbees Solutions has struggled to maintain market confidence. Despite operating in the large and growing children’s retail segment, concerns about margins, scale efficiencies and the pace of profitability have weighed heavily on its stock performance. After a strong post-IPO market debut that saw the share price listed above the issue band, the stock has fallen significantly from its highs — falling more than 50% from its 52-week high of ₹665 in late December 2025 to around ₹298–₹300.
What 2025 Revealed
The best and worst-performing startup stocks of 2025 suggest one thing: public markets now reward discipline over ambition. Clear unit economics, predictable cash flows and reliable profitability timelines are more important than flashy growth or lofty narratives. For startup founders and late-stage investors in India alike, 2025 is a reminder that once companies go public, execution, not storytelling, is ultimately what matters.
