Foreign Investors Fuel India’s New-Age Tech IPO Boom

Foreign investors are significantly increasing their stake in India’s new-age technology sector, with a notable rise in their participation in IPO anchor rounds. Analysis indicates that approximately 40% of the capital raised by 18 new-age tech companies through IPOs since the start of 2025 has come from these international backers.

Firms like Goldman Sachs and Fidelity have become common participants in anchor rounds. Additionally, institutional investors such as the Government of Singapore, Abu Dhabi Investment Authority, and Massachusetts Institute of Technology have also been actively investing in mature Indian tech companies preparing for public markets.

Pratik Loonker, MD and Head of Equity Capital Markets (ECM) at Axis Capital, observes that Foreign Portfolio Investor (FPI) participation in Indian IPOs has shifted from opportunistic to a more deliberate, structural approach. Despite being net sellers in Indian cash equities recently, FPIs have shown a strong presence in primary market IPO anchor tranches, indicating a preference for IPO anchor rounds as a disciplined entry point.

In 2025, FPIs invested ₹26,508 crore in IPO anchor books, representing over a 40% increase from the previous year. The pipeline for new-age tech IPOs remains robust for 2026, with companies like Zepto and PhonePe in various stages of the IPO process.

Drivers of Foreign Investor Interest

Several structural factors are fueling this increased foreign investor interest:

Profitability at Scale: India’s digital economy is demonstrating profitability, with most companies that listed in 2025 either profitable or on a clear path to profitability, addressing past concerns.
Market Size and Performance: India ranked fourth globally in IPO fundraising in 2025, making it a crucial market within emerging market allocations.
Domestic Liquidity: Strong domestic liquidity from Systematic Investment Plan (SIP) inflows, Domestic Institutional Investors (DIIs), and retail participation provides valuation support and a diversified investor base.

These factors collectively offer a risk-return profile competitive with listings in the US and Southeast Asia. Investors are becoming more selective, focusing on companies with differentiated business models, proven unit economics, and large addressable markets. Sovereign funds and global asset managers are leading this trend.

Gopal Jain, MD and CEO of Gaja Alternative Asset Management, notes that broader shifts such as India’s fiscal discipline, monetary prudence, and an improved credit rating (BBB from S&P) have reduced risk premiums for long-term investors. SEBI’s reforms in disclosure, anchor allocations, and lock-ins have also enhanced price discovery and post-listing stability.

Profitability has become a key evaluation metric, with a significant increase in profitable companies listing in Q1 2026 compared to the previous year. These improvements are making India a more attractive long-term investment destination for global limited partners (LPs).

Key Foreign Investors in Indian Tech IPOs

Several global names have been active in the anchor rounds of India’s new-age tech IPOs:

Goldman Sachs: The most active foreign anchor investor since 2025, deploying ₹632.19 Cr across nine anchor rounds in sectors like fintech, edtech, and SaaS.
Franklin Templeton: Invested ₹662.81 Cr in anchor rounds, with a portfolio including Ather Energy, PhysicsWallah, and Pine Labs.
Amundi: Invested approximately ₹582.74 Cr across companies like Ather Energy, Urban Company, and Pine Labs. Its India strategy also includes a significant stake in SBI Mutual Fund.
Fidelity Investments: Invested around ₹451.52 Cr through its global funds in IPOs of Lenskart, Meesho, and PhysicsWallah.
Government of Singapore (GIC): Invested about ₹409.1 Cr across four anchor rounds in companies like Groww, Lenskart, and Meesho.
Government Pension Fund Global (Norway): Invested approximately ₹351 Cr across anchor rounds in Aequs, Groww, and Lenskart, marking an expansion into new-age tech.
Nomura: Deployed about ₹311 Cr across anchor rounds of Lenskart, Pine Labs, and Urban Company.
Abu Dhabi Investment Authority (ADIA): Invested about ₹277 Cr across anchor rounds in Ather Energy, Groww, and Meesho.
BlackRock: Invested around ₹220 Cr across anchor rounds, backing companies such as Aequs, Lenskart, and Meesho.
Amansa Capital: Deployed about ₹217.16 Cr across anchor rounds in BlueStone and Meesho, focusing on digital commerce.

This sustained and increasing participation from foreign investors underscores their confidence in India’s digital economy and its potential for high-growth public market listings.