India, July 29 -- Almost five years ago, Paytm became one of the first Indian startups, and among the first fintech companies, to make its stock market debut. While the IPO received a muted response, it marked a defining moment for India's startup ecosystem, signalling the beginning of the sector's journey into the public markets. Around the same time, PB Fintech, the parent company of Policybazaar, also went public.

Much has changed since then. India now has more than 60 listed startups, and public market expectations have evolved. The focus has shifted from growth at any cost to sustainable profitability, while valuations have become more disciplined. Investors are also subjecting digital business models to greater scrutiny, placing in...