Fintech’s Second IPO Wave: This Time, It’s About Profits

After the first generation of listed fintech companies tested public market appetite, a fresh set of startups is preparing to make its debut

The emerging pipeline of fintech IPOs is less a replay of the 2021 listing cycle and more a reflection of how the sector has matured over the past five years

Unlike the first fintech IPO cycle, investors are unlikely to reward companies simply because they operate in a high-growth category

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Almost five years ago, Paytm became one of the first Indian startups, and among the first fintech companies, to make its stock market debut. While the IPO received a muted response, it marked a defining moment for India’s startup ecosystem, signalling the beginning of the sector’s journey into the public markets. Around the same time, PB Fintech, the parent company of Policybazaar, also went public.

Much has changed since then. India now has more than 60 listed startups, and public market expectations have evolved. The focus has shifted from growth at any cost to sustainable profitability, while valuations have become more disciplined. Investors are also subjecting digital business models to greater scrutiny, placing increased emphasis on execution, governance and the path to consistent earnings.

It is against this backdrop that a new cohort of fintech startups is preparing to tap the public markets. After the first generation of listed fintech companies tested public market appetite, a fresh set of........

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