Rise of QIPs: New-Age Unicorns Surge Capital Raising After IPO in Hyper-Competitive Markets

Rise of QIPs: New-Age Unicorns Surge Capital Raising After IPO in Hyper-Competitive Markets​

The trend of newly listed companies returning for follow-on fundraising is rapidly gaining momentum. Instead of relying solely on public market mechanisms, new-age firms are increasingly turning to Qualified Institutional Placements (QIPs) to secure fresh capital. This shift signals a mature evolution in how high-growth technology and modern businesses sustain their expansion post-debut.

These listed enterprises have collectively raised or announced over ₹25,200 crore through QIPs since 2021. Data compiled by Moneycontrol from Prime Database indicates that at least eight companies launched QIPs between 2021 and July 2026, with another company currently nearing completion of its fundraising process.

Why QIPs Are the Preferred Growth Capital Mechanism for New-Age Firms​

While Qualified Institutional Placements are not exclusive to nascent firms, they have become a critically practical method for newly listed technology companies operating in intensely capital-intensive and competitive global markets.

Ambareesh Baliga, an independent consultant and market analyst, noted that once a company is listed, it gains a market-determined valuation. When these companies need substantial fresh funds, they face several options including rights issues, private placements, or QIPs. He emphasized that the QIP often stands out as the most efficient and effective method, particularly because it offers the shortest turnaround time to engage institutional investors in the listed entity.

This strategic pivot is necessary because new-age companies require significantly higher capital compared to traditional businesses. As Raghuram Kasiviswanathan, partner at Uniqus Consultech, pointed out, these firms are still refining their business models while constantly investing in technology and expansion.

A Look at the Accelerating Fundraising Momentum​

The QIP activity initially picked up in 2021, marked by Indiamart raising ₹1,070.17 crore, followed by Route Mobile which mobilized ₹867.5 crore. Activity resumed strongly in 2024 when Zomato raised a substantial ₹8,500 crore through one of the largest QIPs by a new-age company. Zaggle Prepaid Ocean Services subsequently completed an issue worth ₹594.84 crore that same year.

The pace intensified in 2025. Swiggy raised a massive ₹10,000 crore, representing the largest QIP conducted by a new-age listed company that year. This was complemented by Kaynes Technology India, which successfully raised ₹1,600 crore.

Fundraising continued into 2026, with Ola Electric Mobility raising ₹780.24 crore and IdeaForge Technology mobilizing ₹500 crore. Ather Energy also launched a significant QIP worth ₹1,300 crore at a regulatory floor price of ₹1,169.70 per share. This raise is part of the electric scooter maker’s broader capital push toward repaying debt and boosting R&D capabilities.

Growth Trajectory: How Institutional Fundraising Values Have Climbed​

The scale of institutional support has shown substantial growth over a short period. The two QIPs executed in 2021 collectively raised nearly ₹1,938 crore. This figure was significantly eclipsed in 2024, when companies completed or announced QIPs valued at over ₹9,000 crore.

The valuation trend accelerated further in 2025, with the total value climbing to ₹11,600 crore. This surge was primarily driven by Swiggy’s proposed large issue of ₹10,000 crore and Kaynes Technology's successful fundraising of ₹1,600 crore.

Sectors Driving Demand: Beyond Consumer Internet​

The firms utilizing QIPs demonstrate that this trend extends far beyond the consumer internet sector. The participating companies span a diverse range of industries including food delivery, enterprise software, electronics manufacturing, electric mobility, telecommunications, and defense technology.

QIPs provide a crucial mechanism for these established public entities to acquire capital without having to conduct another follow-on public offer. Companies typically deploy the resulting proceeds to strengthen their balance sheets, invest in advanced technology, pursue strategic acquisitions, or meet expanded working capital requirements.

Analysts stressed that investors must critically evaluate how QIP proceeds are utilized, as technology businesses operate under a different risk-reward profile than conventional sectors. Baliga concluded that while the momentum is expected to continue due to the efficiency of the route, it will primarily benefit those listed entities qualified as Institutional grade stocks.