India's startup ecosystem has entered a phase of 'cautious growth', with 70 to 120 startups expected to list on public markets by 2030, according to a report released on Friday, 22 May 2025 by professional services firm Aon. The findings point to a maturing but disciplined market, where capital efficiency and talent strategy are increasingly shaping startup trajectories.

IPO Pipeline and Market Readiness

As of January 2026, 23 startups were at various stages of IPO preparation, while approximately 25 had already filed draft prospectuses with the market regulator. The active pipeline signals growing investor confidence, even as global funding volumes remain below pre-pandemic levels. This is the most concentrated cluster of Indian startup IPO filings in recent memory, reflecting a structural shift from growth-at-all-costs to profitability-led public listings.

Salary Trends and Talent Competition

Indian startups are projected to deliver an average salary increase of 9.7 per cent in 2026, according to the Aon report. While this marks a moderation from earlier peak increments, it remains competitive enough to attract and retain critical talent in a tightening labour market. Notably, employee expectations are shifting rapidly — particularly among younger cohorts — with benefits emerging as a key differentiator alongside base pay.

The report found that 76 per cent of employees expressed willingness to trade existing benefits for more personalised offerings. Wellbeing has also become a boardroom priority, with more than half of employees expecting employers to actively support financial, emotional, and long-term security needs.

Sectors Attracting Capital

Despite easing inflation globally, GDP growth remains subdued and the technology sector continues to face slower momentum. Yet Indian startups are attracting a disproportionate share of investment relative to global peers. Capital is flowing toward cleantech and green energy, generative AI, health technology, and fintech — sectors aligned with sustainability priorities and the accelerating adoption of AI-driven efficiency tools. Founders, according to the report, remain optimistic that the broader funding environment will improve through 2026.

Hiring Outlook and Financial Discipline

Hiring trends present a mixed picture. A significant proportion of organisations are maintaining headcount or making selective adjustments rather than pursuing aggressive expansion — a sharp contrast to the bulk-hiring cycles of 2021–22. A majority of startups, however, expect positive revenue growth in 2026. The overarching theme across the ecosystem is financial discipline: organisations are investing selectively in high-impact roles and capabilities rather than scaling indiscriminately.

What This Signals for India's Startup Economy

The Aon findings reinforce a broader narrative: India's startup story is evolving from a funding-volume game to a fundamentals-driven one. With exits and secondary market activity still below historic highs, the IPO route is becoming the primary liquidity event for founders and early investors alike. How many of the projected 70–120 listings ultimately materialise — and at what valuations — will be a critical test of the ecosystem's maturity over the next five years.