According to Axis Capital’s MD and equity capital markets (ECM) head Pratik Loonker, FII participation in Indian IPOs has shifted from “opportunistic to structurally deliberate”. “Despite being large net sellers in Indian cash equities in recent times, FPIs participated with an average share of over 55% in primary market IPO anchor tranches in 2025 alone. This bifurcation — selling secondary, buying primary — signals that global investors are using IPO anchor rounds as a cleaner, valuation-disciplined entry point,” he said.

In 2025, FPIs invested ₹26,508 Cr in IPO anchor books, marking over 40% growth from the previous year, Loonker shared. While five new-age tech companies — Aye Finance, Fractal Analytics, Amagi, Shadowfax and SEDEMAC — made their public market debut in the first three months of 2026, the startup IPO pipeline for the remainder of the year also looks sturdy. Besides, the startup IPO pipeline remains strong for 2026, with unicorns like Zepto, PhonePe, among others, at various stages of the IPO process.

So, will the foreign investors continue to back new-age tech IPOs this year as well? What’s Driving FII Interest In New-Age Tech IPOs? Loonker said three structural factors are driving global investor interest in India’s new-age tech IPOs.

First, India’s digital economy is now demonstrating profitability at scale, with most new-age tech companies that listed in 2025 either already profitable or on a clear path to profitability, addressing concerns that weighed on the 2021 startup listing cycle. Second, India ranked fourth globally in IPO fundraising in 2025 by amount raised, making it increasingly difficult for global investors to ignore the market within emerging market allocations. Third, a strong domestic liquidity base led by SIP inflows, domestic institutional investors (DIIs), and retail participation provides valuation support, a diversified investor base, and reliable exit visibility for overseas investors.

“Together, these factors create a risk-return profile that now competes credibly with US and Southeast Asian tech listings,” he said. Loonker also noted that foreign investors are becoming more selective rather than broad-based in their investments. He said FPI participation is now concentrated among sovereign funds and global asset managers, with investors preferring companies that have differentiated business models, proven unit economics, and large addressable markets.

Echoing a similar view, Gaja Alternative Asset Management MD and CEO Gopal Jain said that foreign investor participation reflects selective conviction rather than a broad-based India trade. According to Jain, three broader shifts are drawing global investors to India’s IPOs. The country’s fiscal discipline, monetary prudence, and S&P’s upgrade of India’s credit rating to BBB last year have reduced the risk premium applied by long-term investors.

At the same time, SEBI’s reforms around disclosure, anchor allocations, and lock-ins have improved price discovery and post-listing stability. He added that profitability has become central to investor evaluation, with around 60% of companies that listed in Q1 2025 being profitable, a sharp jump from 2024. For long-term global LPs evaluating India over decade-long cycles, Jain said these changes are expanding exit pathways and making the country harder to ignore in a global tech allocation.

This explains their high participation in new-age tech IPOs, which is expected to continue in the coming years. Among foreign investors, several global names have been active in anchor rounds of India’s new-age tech IPOs. These include Goldman Sachs, Franklin Templeton, Amundi, Fidelity Investments, and BlackRock.

Sovereign-backed investors such as GIC, Monetary Authority of Singapore, Government Pension Fund Global, and Abu Dhabi Investment Authority have also participated, along with firms like Nomura and Amansa Capital. Let’s take a look at some of the most active foreign anchor investors for Indian startup IPOs. Most Active Foreign Investors In Indian Startups Goldman Sachs Goldman Sachs has emerged as the most active foreign anchor investor in new age tech IPOs since 2025, deploying ₹632.19 Cr across nine anchor rounds. Its investments span fintech, edtech, D2C, SaaS, analytics and coworking, backing companies such as BlueStone, Fractal, Groww, Lenskart, Meesho, PhysicsWallah, SEDEMAC, Urban Company and WeWork India