India’s Capital Markets: A 2025 Powerhouse
India’s capital markets have emerged as a global powerhouse in 2025, defying macroeconomic headwinds and outperforming peers with an impressive 25% average return on mainboard IPOs. This stands in stark contrast to the Nifty 50’s modest gain of 6.2%. At the heart of this boom are tech startups like InMobi and OfBusiness, both backed by SoftBank, which are leveraging India’s investor-friendly environment to fuel their public market debuts. These listings are not merely financial milestones; they reflect a strategic evolution in the nation’s economic narrative.
A Structural Shift in India’s IPO Landscape
The Indian IPO market raised a staggering INR 1,630 billion in 2025, more than double the previous year’s total. This surge is driven by a confluence of factors: retail investor enthusiasm, with IPO subscriptions often exceeding 100 times the available shares, rationalized valuations following 2024’s private equity and venture capital-backed exits, and a regulatory framework that now prioritizes transparency. Interestingly, smaller IPOs (those under INR 2 billion) have outperformed larger ones, averaging 37% in listing-day gains. This trend signals a market that favors agility and innovation over sheer scale.
SoftBank-backed unicorns are capitalizing on this momentum. InMobi, a leader in mobile advertising, is relocating its corporate base from Singapore to India to align with the domestic IPO frenzy. CEO Naveen Tewari boldly claims that India’s market now rivals the U.S. S&P 500’s tech dominance, especially given the Nifty 50’s 13% year-to-date gain compared to the MSCI Asia Pacific’s 4.5%. This shift underscores a broader trend: Indian startups are abandoning Singapore’s stagnant IPO market to tap into a homegrown ecosystem that values growth and scalability.
Strategic Advantages of InMobi and OfBusiness
InMobi’s relocation is not just symbolic; it is a calculated move to access India’s deepening capital pool and retail investor base. The company, which has generated $268 million in annual revenue while maintaining profitability, is positioning itself to benefit from India’s mobile-first digital economy. Its potential $10 billion valuation hinges on its ability to scale in a market where smartphone penetration is projected to hit 70% by 2026.
Meanwhile, OfBusiness is taking a different but equally compelling path. The B2B e-commerce platform is set to raise $1 billion via an IPO in the second half of 2025, targeting a valuation between $6 billion and $9 billion. Its integrated model—combining raw material procurement, embedded financing through its NBFC Oxyzo, and SaaS tools for SMEs—creates a flywheel effect. In FY24, OfBusiness reported a net profit of $72.6 million on $2.3 billion in revenue, with EBITDA margins at 7.2%. These metrics, rare among Indian unicorns, make it a standout candidate for investor scrutiny.
SoftBank’s Role and the Global Investor Angle
SoftBank’s Vision Fund, which has invested over $800 million into OfBusiness, plays a pivotal role in this narrative. The firm’s 15% stake in OfBusiness, alongside investments from Tiger Global and Alpha Wave Global, signals strong confidence in India’s B2B sector. SoftBank’s broader India portfolio—spanning companies like Ola Electric and Swiggy—has seen mixed exits but remains bullish on the market’s long-term potential.
For foreign investors, India’s IPO market presents a unique arbitrage opportunity. While foreign portfolio investors (FPIs) have experienced net outflows in secondary markets, they have remained net buyers in primary offerings, where valuations appear more attractive. OfBusiness’s IPO plans to allocate $200 million to new shares and $800 million via an Offer for Sale (OFS), a structure that balances liquidity with price stability. This approach could attract global funds seeking exposure to India’s next generation of tech leaders.
Why This Matters for Investors
The IPOs of InMobi and OfBusiness are emblematic of a larger trend: India’s transition from a “market of opportunity” to a “market of execution.” Unlike past cycles, where unicorns relied heavily on private capital for liquidity, today’s startups are proving their scalability and profitability before going public. This shift reduces downside risk for investors and aligns with global trends favoring EBITDA-positive tech companies.
For those looking to capitalize, timing is critical. India’s IPO pipeline includes over 75 companies in 2025, with tech firms accounting for 40% of the total. The key is to prioritize businesses with recurring revenue models, strong EBITDA margins, and clear unit economics—OfBusiness checks all these boxes. InMobi, while still unlisted, offers exposure to India’s mobile advertising boom, a sector growing at an annual rate of 18%.
Conclusion: A Strategic Bet on India’s Digital Future
India’s tech IPO boom is more than just a market cycle; it represents a structural shift driven by policy reforms, retail participation, and a generation of startups that have mastered the art of profitability. InMobi and OfBusiness, with their strategic relocations and robust financials, are leading the charge. For investors, the lesson is clear: those who ignore India’s IPO market today may miss the defining growth story of the next decade.
Investment Advice
Consider allocating to IPOs of SoftBank-backed Indian tech firms with clear EBITDA visibility, such as OfBusiness, and track InMobi’s pre-IPO filings for valuation clues. Diversify across sectors—telecom, fintech, and B2B—to hedge against sector-specific risks. With the Nifty 50 on a 13% upward trajectory and IPO valuations appearing more rational, 2025 is shaping up to be a pivotal year for India’s capital markets.