In less than three months into his second stint as the US President, Donald Trump has thrown dozens of startup IPOs in India into a bit of confusion with his tariff wars.

The US tariff changes and the potential impact on foreign investors has compelled many Indian startups to rethink their public listing timelines, valuations and IPO sizes.

As per Inc42’s IPO tracker, 36 Indian startups are in various stages of their IPO journey, with some such as Ather Energy, PhysicsWallah, boAt, OYO and others waiting for the right market timing and SEBI approvals. How will the tariffs and the potential geopolitical implications on foreign investors affect these Indian startup IPOs?

Billions On The Line

More than $20 Bn (INR 1.6 Lakh Cr) is expected to be raised from the public markets from listings over the course of the next two years, with the likes of PhonePe, OYO, PhysicsWallah, OfBusiness, Urban Company expected to lead the way in 2025 and early 2026.

Collectively, the 36 startups waiting in the IPO queue have raised more than $12.2 Bn (INR 1.1 Lakh Cr) in VC and PE money over their lifetimes, so a lot rests on their IPO fortunes.

And while the year began with great expectations, a lot of that enthusiasm is now being walked back into the freezer, largely because of the tariffs proposed by Donald Trump in US, which will have second and third order impacts in India.

Some analysts are worried about the impact of foreign investors cashing in on their India startup portfolio through IPOs, which is why many startups continue to be bullish about an IPO in a bearish market.

Since September 2024, FIIs (Foreign Institutional Investors) in India have withdrawn more than INR 2 Lakh Cr out of Indian equities. For many startup IPOs, it’s essential that these FIIs invest some of this back into new IPOs, as typically this has driven demand for large public issues.

So, why are startups rushing towards IPOs in this uncertain market? The clue might lie in the fact that FIIs still have a great appetite to generate more alpha from their investments in India.

That’s why many startups are racing to the IPO finish line, so their investors can realise returns on their existing investments. This is especially true for startups with significant presence of foreign investors on their........

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