Inflection Point Ventures (IPV) is targeting 20-25 exits in FY27, betting on rising acquisition activity, stronger secondary markets and increased participation from family offices and venture capital funds to drive liquidity in India’s startup ecosystem.

“We are already in the middle of executing eight exits for FY27 and there are another 15-17 in the pipeline,” Mitesh Shah told businessline. “Our focus is not just to increase the number of exits this year, but also to improve the overall quality of exits in terms of value and IRR.”

The early-stage investment platform delivered 16 exits in FY26 with a blended internal rate of return (IRR) of 41 per cent and a 2.86x money-on-money multiple, at a time when the broader startup ecosystem continued to face a liquidity crunch and subdued IPO activity.

IPV’s top-performing exits included Secret Alchemist, the Samantha Ruth Prabhu co-founded aromatherapy and fragrance brand, which generated a 192 per cent IRR and 4.56x multiple. Other strong exits included clean energy startup Aerem with a 60 per cent IRR, QubeHealth with 49 per cent, and EV infrastructure platform Kazam with 34 per cent.

The firm also saw strategic acquisitions such as AFK Gaming’s sale to NODWIN Gaming and GeoiQ’s acquisition by Lenskart, while Rightbot recorded a partial exit involving Amazon.

According to Shah, IPV has consciously built an “exit engine” over the past six years by creating relationships with venture capital firms, family offices, strategic buyers and institutional investors.

“Liquidity in early-stage investing does not happen automatically. You have to actively create it,” Shah said. “We have spent years building relationships with over 700 venture funds, family offices, strategic investors and corporates to help startups raise follow-on capital and simultaneously create exit opportunities for our investors.”

The firm said more than 50 per cent of its portfolio companies with a vintage of over two years have either delivered an exit or raised follow-on funding. In FY26, 26 IPV-backed startups recorded follow-on rounds, generating a blended IRR of 84.22% and a 3.33x multiple across transactions.

Shah said partial exits are becoming increasingly relevant in the current market as investors look to de-risk portfolios while continuing to participate in upside potential.

“Partial exits are proving to be very effective because investors can recover capital, book gains and still remain invested in businesses that continue to scale,” he said. “It gives investors flexibility while also helping startups bring in new institutional capital.”

IPV’s outlook for FY27 comes amid signs of improving activity in the private markets even as public markets remain volatile. Shah said the correction in startup valuations since the 2021 funding boom has resulted in more disciplined capital allocation and sustainable growth expectations.

“There is still strong capital formation happening in private markets,” he said. “The difference now is that valuations are more rational, founders are focused on sustainable growth, and investors are prioritising profitability alongside scale.”

He added that acquisitions are emerging as a key liquidity route as larger startups and corporates increasingly look to buy capabilities instead of building them internally.

“We are seeing more strategic buyers approach us directly for acquisition opportunities,” Shah said. “Companies today want faster market access, technology and strong founder teams, and that is opening up a meaningful acquisition pipeline for startups.”

Published on May 14, 2026