Indian startup unicorns are abandoning overseas listing strategies in favor of domestic stock market debuts, with three major companies preparing IPOs worth over $1 billion combined in the next 12-18 months.

Landmark Domestic Listing Trend

Groww, India's largest retail brokerage firm backed by Microsoft CEO Satya Nadella, is set to become the first Indian startup to list domestically after relocating from the US. The company's IPO, expected later this year, could achieve a $7-8 billion valuation, with investors including Y Combinator, Ribbit Capital, and Tiger Global planning significant exits.

Three unicorn used-car platforms—CARS24, CarDekho, and Spinny—are in early discussions with bankers to assess domestic listing opportunities. These companies have been trimming costs and divesting non-core ventures to prepare for public market scrutiny.

Strategic Corporate Restructuring

The domestic listing trend follows successful relocations by major startups. Groww paid approximately $159 million in taxes when shifting its headquarters from Delaware to India in 2024. Similarly, PhonePe relocated from Singapore to India in 2022, while Flipkart announced plans for a similar move.

"India is now the stage that matters," said Sanjeev Bikhchandani, founder of Info Edge Ventures, at Inc42's MoneyX event. "With deeper markets, stronger retail participation, and IPO benchmarks that make sense, founders no longer need a Singapore or Delaware tag to raise capital".

Market Dynamics Driving Change

India has emerged as the world's third busiest IPO destination in 2025, with firms raising over $10 billion through first-time share sales. The robust retail investor participation and rising appetite for growth stocks makes domestic markets increasingly attractive.

CARS24 has conducted sweeping operational overhauls, cutting hundreds of jobs and shuttering non-core businesses like Inspare and FourDoor to focus on its core used-car marketplace. This preparation reflects the higher operational standards expected from public market investors.

Regulatory and Strategic Advantages

Relocating headquarters to India helps startups align with evolving local regulations and meet domestic listing requirements. The trend also enables companies to tap India's expanding retail investor base while maintaining operational control in their primary market.

The shift represents growing confidence in India's capital market infrastructure and regulatory framework. SEBI's progressive policies and improved market depth have created conditions favorable for technology company listings.

Investor Exit Opportunities

For global venture funds, domestic IPOs provide substantial exit opportunities without currency conversion complexities. Groww's listing alone could generate significant returns for Peak XV Partners, Ribbit Capital, and Y Combinator, who collectively hold about 5.6% of total equity.

The trend reflects broader ecosystem maturation, where Indian startups no longer view overseas listings as necessary validation. Instead, domestic markets offer better valuations, investor understanding, and regulatory clarity.

Market Implications and Future Outlook

This "reverse migration" trend could accelerate as more unicorns recognize domestic market advantages. Success stories like Groww's listing could encourage other startups to abandon expensive overseas legal structures in favor of Indian incorporation.

The combined IPO pipeline represents a watershed moment for India's startup ecosystem, potentially creating multiple large-scale exit events that could fuel the next generation of startup investments and entrepreneur wealth creation.

Internal Links:

·       Indian IPO Market Trends 2025

·       Startup Relocation Strategies India

·       Domestic vs International Listing Comparison

External Links:

·       BSE Official Website

·       NSE India

·       SEBI Regulations