Indian investors discuss tech IPOs with city construction in background.
Institutional investors are increasingly backing Indian new-age tech IPOs, providing crucial stability and validation. With growing business maturity and high market liquidity, 18 new-age tech companies have launched IPOs since the start of 2025.
Anchor investors, including mutual funds, sovereign wealth funds, and foreign institutional investors, commit capital before the IPO opens to the public, typically at the upper end of the price band. This early participation boosts credibility, demand, and investor confidence, effectively validating the company’s valuation.
According to independent market analyst Ambareesh Baliga, anchor investors provide bulk allotment based on relationships and other parameters, creating a win-win situation for all concerned. The lock-in period for anchor investors also helps stabilize shareholding and limits immediate sell-offs post-listing.
Domestic mutual funds like SBI Mutual Fund, ICICI Prudential MF, and Axis Mutual Fund, along with foreign investors such as the Government of Singapore and Massachusetts Institute of Technology (MIT), are key players in anchor rounds. Inc42 data identifies SBI Mutual Funds as the most active, with ₹1,739.63 Cr invested across 10 companies, including Ather, Urban Company, and Lenskart.
Aditya Birla Sun Life Mutual Fund follows with ₹893.25 Cr invested in 12 companies, while ICICI Prudential Mutual Fund has deployed ₹854.54 Cr across 10 companies. These investments reflect a strong appetite for higher-risk, high-growth bets in the Indian startup ecosystem.
Other active anchor investors include NIPPON India Mutual Fund, Goldman Sachs, Franklin Templeton, HDFC Mutual Fund, and Amundi, each contributing significantly to the pre-IPO rounds of new-age tech companies. Their participation underscores the potential for long-term growth in these businesses.
As the pipeline of new-age tech companies planning IPOs grows, these anchor investors are expected to continue playing a vital role in shaping the Indian startup ecosystem’s public market debuts.
About the Author
