Startup funding in India is not only about venture rounds: the public markets route opened wider on 30 October 2026, when the Securities and Exchange Board of India (SEBI) cleared the IPO plans of Secunderabad-based supermarket chain Ratnadeep Retail, alongside Atomberg Technologies, GNI Infrastructure and Punjab Carbonic.

What Ratnadeep Retail plans to raise

The proposed issue comprises a fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of up to 1.49 crore shares by existing shareholders. Promoters Sandeep Agarwal, Manish Bhartiya and Mitesh Bhartiya are among those participating in the OFS. The company had filed its draft red herring prospectus (DRHP) with SEBI on 1 July 2026.

Where the money goes

Ratnadeep plans to use Rs 260 crore of the fresh proceeds to set up new stores under its Ratnadeep and National Mart formats, Rs 40 crore for debt repayment, and the balance for general corporate purposes. The company may also consider a pre-IPO placement of up to Rs 80 crore, which would reduce the fresh issue size to that extent.

A profitable, store-led scale story

As of 31 March 2026, Ratnadeep operated 190 stores across Andhra Pradesh, Telangana and Karnataka, spanning neighbourhood supermarkets, premium food stores and its value-led National Mart hypermarket format. For FY26 it reported revenue from operations of Rs 2,223 crore and profit after tax of about Rs 37 crore, a swing from a loss in the previous year. Motilal Oswal Investment Advisors, Axis Capital and DAM Capital Advisors are the book-running lead managers. SEBI's observations clear the company to proceed with its public issue, subject to regulatory requirements; the price band and timetable are yet to be announced.

SEBI's update also noted that the draft papers of WOG Technologies were withdrawn or returned on 30 October 2026.

Why it matters for founders

A SEBI observation letter is the last big gate before an IPO, and Ratnadeep's clearance shows public investors will back a profitable, regionally dense retail chain, not just high-burn tech. For founders eyeing a listing, the lesson is in the prospectus: 190 stores, a clear use of proceeds, and a return to profit made the story easy to underwrite. Build the profitable footprint first; the IPO window rewards it.