India Well-Positioned to Become Global Startup IPO Hub: Peak XV’s Rajan Anandan

India is emerging as one of the world's most vibrant IPO markets and has the potential to eventually become the startup IPO market of the world, according to Rajan Anandan, Managing Director of Peak XV Partners. Speaking at the 9th edition of The Better Call Show by Idea Pattarai in Chennai, Anandan noted that the markets have opened up significantly for startups since 2021.

While discussing market conditions, Anandan emphasized that consistent execution, reasonable valuations, and profitability remain critical for companies going public. Peak XV itself has taken 38 companies public, including eight or nine IPOs over the past 18 months and six IPOs in the calendar year 2025. According to Anandan, the firm recorded five IPOs in a span of five weeks in 2025 and maintains one of its strongest IPO pipelines for the coming years.

Addressing the artificial intelligence sector, Anandan stated that India is well-positioned to build economical and right-sized AI products tailored to local consumption patterns. He projected that India will have 25 to 30 AI unicorns by 2030 and could see large AI companies with market capitalizations exceeding $10 billion within four to five years. While lauding the IndiaAI Mission, he suggested that government support should combine grants for AI startups and researchers with long-term commitments to compute-supplying companies.

Anandan also discussed findings from his book, *The Lift-Off Nation*, which outlines the next decade of Indian entrepreneurship. He identified high-growth consumer spaces, domestic brands, and deep technological innovation as key drivers for the coming decade. Regarding deep tech, he noted that India has multiple factors in its favor but faces a significant R&D funding gap.

According to the data cited from his book, India spends approximately 0.65 percent of its GDP on R&D, amounting to about $18 billion a year. This trails behind China at 2.5 percent and the United States at 3.5 percent, meaning India's spend is off by a factor of five compared to a target of roughly $100 billion. Anandan described the ₹1 lakh crore RDI Fund as a game changer aimed at encouraging private-sector participation, noting that India needs a larger pipeline of researchers capable of commercializing scientific advances.

Detailing Peak XV’s own strategy in deep tech, Anandan pointed to investments in four semiconductor companies and several space tech ventures. He confirmed that the firm remains a broad-based investor with plans to expand its focus in semiconductors, space, and artificial intelligence. During his visit to Chennai, which he highlighted as a potential deep tech hub, Anandan also interacted with portfolio founders of MudhalVC to review pitches and provide feedback.

"Rajan Anandan's observations highlight a mature transition in the Indian startup ecosystem, where public markets are increasingly rewarding profitability and execution. The projection of 25 to 30 AI unicorns by 2030 signals strong structural growth in technology. However, closing the R&D funding gap relative to the US and China will be essential for India to build sustainable, globally competitive deep tech enterprises." — Dr. Shishir Gupta, Founder & CEO, StartupLanes