IPO checklist for FinTechs: Credibility, governance, profits over vanity growth – ETCFO-OxBig News Network

Primary markets in India are expected to raise USD 18 billion in the second half of 2025. The most recent listing was HDB Financial Services, which generated Rs 12,500 crore through its IPO. Payments fintech Pine Labs filed its DRHP with SEBI in late June, while wealth management platform Groww took the confidential route in May 2025. Digital lender Kissht intends to do so before July end.

Now, what does it really take for a FinTech to go public? Is the IPO (Initial Public Offering) wave just about investor exits or a sign of real sector maturity? What are public markets demanding from founders today? All that was discussed in an ETBFSI panel discussion as part of a special episode of FinTech Diary.

IPO as a maturity milestone for businesses

Venture Capitalist Sagar Agarvwal, Co-founder & Managing Partner, Beams FinTech Fund calls IPOs as the holy grail and a moment of truth for all business owners, regardless of their sector.

“IPO gives you transparency, visibility, and a monetizable asset. Your accessibility to capital becomes cheaper, better, and faster. You can tap into foreign resources and investors, also allows companies to become sustainable organisations, and not just cater to investor exits,” stated Agarvwal. As per him, Indian private markets are not as deep as the US and Europe.

Co-founder & Group CEO of Fibe, Akshay Mehrotra’s view is that lending engineers need to keep raising more money to continue the growth story. It’s a leverage business. Recounting Fibe’s journey, Mehrotra said that the company had done multiple institutional rounds and listed its debt before considering equity listing. “It gave us the leeway to build meaningfully and prepared us for full IPO readiness,” he added.

“If you want to build a long-term sustainable business, I do believe that going for a listing is the right path because it sets you up for long-term growth,” said Upasana Taku, Co-founder, ED & CFO of MobiKwik that got listed in December 2024.

MobiKwik had filed prematurely in 2021, Taku said that the 2024 filing was supported by four quarters of profitability. It took them the full year, and they were far more confident and capable this time.

Public markets reward depth, discipline, and trust

On sector-specific dynamics, Mehrotra argued that financial services present unique opportunities due to their ability to build disproportionately large companies. He pointed out the challenges in achieving high leverage in private markets, especially without backing from large industrial houses. “Public markets bring access to better ratings and more credit lines. Unless that happens, you can’t build an ROE business,” said Fibe Co-founder Mehrotra.

Taku added that going public also changes perception. “It helps with regulators, partners, and consumers. It shows progression and maturity as an institution,” she said, adding that founders must balance market pressures with a long-term vision. “Pressure to perform is always there. You don’t want to grow just 5–10 per cent when there is a huge market opportunity,” she remarked.

Regulation, timing, and readiness

Mehrotra stressed the importance of understanding regulation deeply. “If you understand the law of the land, you can do a good job. The regulator is the most important piece. We listed our bonds earlier, and we saw great results. It helped us become more efficient,” he said. He believes that Fibe is approaching IPO readiness but would wait until timing and leverage conditions are ideal. “We’re fortunate to have raised capital from marquee investors like TPG and Norwest. That gives us the option to stay private longer,” he explained.

Taku observed that post-IPO, the focus shifts even more toward performance and governance. “We’ve seen more companies come to the market with positive unit economics, not just vanity GMV growth,” she said. “There’s a lot of depth in the Indian market. Investors are interested in companies they use as consumers—be it food delivery or fintech.”

IPO capital between 2026-2030

Agarvwal agreed that market depth is improving. “From payments and lending companies to enterprise SaaS and asset management, the whole spectrum of fintech is now coming to the market. USD 6 – 7 billion flows into Indian public markets every month. If businesses perform well, their share prices catch up,” he said. He emphasized that founders must be prepared. “A single mistake on an earnings call can take your stock down 20 per cent. Public market analysts are very brutal,” he said.

On whether fintech IPOs are a temporary surge or a sign of sector maturity, Mehrotra said, “It’s both. Post-Covid, fintechs have scaled rapidly. Co-lending, regulatory clarity, and better operating models have made companies more profitable. Today, it’s a golden period for IPOs.” Taku concurred, adding that even smaller firms, valued between USD 200 million and USD 2 billion, will find takers in the market. “BFSI is the largest sector in Indian capital markets. Investors are now deploying fintech-focused analysts to evaluate models more efficiently,” she said.

Agarvwal said the next five-year cycle could be pivotal. “In the last five years, India raised USD 50 billion in IPO capital. I won’t be surprised if we cross USD 100 billion between 2026 and 2030. A large part of it will go to fintech and financial services. AI is changing infrastructure and opex dramatically. We will see 3x to 10x growth across fintech segments.”

Join the community of 2M+ industry professionals.

Subscribe to Newsletter to get latest insights & analysis in your inbox.

<!–

–>

All about ETCFO industry right on your smartphone!

<!–

–>

<!–
Scan to download App –>

<!– –>