Indian startups prioritise brand building in IPO plans; Meesho, Groww, boAt allocate over Rs 1,400 crore

In a shift from earlier trends, Indian companies, especially new-age consumer-focused businesses, are prioritizing brand building and marketing as a key use of IPO proceeds, beyond traditional allocations toward corporate purpose, R&D, or working capital.

According to Storyboard18 analysis, several upcoming IPO- bound firms have earmarked dedicated funds exclusively for marketing to strengthen brand visibility.

Eyewear giant Lenskart, for instance, allocated Rs 320 crore from its recently concluded IPO to brand-building initiatives. The Gurugram-based company has outlined a four-year marketing plan, with Rs 24 crore planned for FY26 and Rs 98 crore annually for FY27 to FY29.

Similarly, new-age players preparing for public listing, including Meesho Limited, Imagine Marketing (boAt), Shadowfax Technologies, and Duroflex Limited, Billionbrains Garage Ventures Limited (Groww), have disclosed specific marketing budgets in their draft offer documents.

"Marketing and advertising expenditure has assumed importance for B2C-focused companies. These firms are allocating at least 4-5% toward marketing because of deeper mobile penetration and rising social media influence," said Avinash Gorakshakar, Founder and Head of Research, AvinashMentor Research. He added that since many of these businesses operate on cash-burning models, upfront clarity on marketing allocation helps signal transparency to investors.

Meesho has earmarked Rs 1,020 crore for marketing and brand-building efforts, while Groww has planned Rs 225 crore, boAt has aimed to deploy Rs 150 crore and Duroflex to allocate Rs 45 crore. Meesho, in particular, has emphasized the role of marketing in driving user growth. The company's digital marketing spend surged to Rs 548 crore in FY25, up from Rs 351 crore in FY24; in Q1 FY26 alone, it spent Rs 227 crore on digital advertising.

Moreover, boAt mentioned in its DRHP, "We are committed to continue investing in strategic brand-building initiatives to enhance customer engagement and strengthen our position as a leading digital-first consumer brand".

According to Lloyd Mathias, Business Strategist and Independent Director, "IPO valuations often hinge on future growth and market dominance rather than current profitability. Marketing helps build strong consumer brands, which eventually translates into investor value".

This approach gained momentum with IPOs of Mamaearth parent Honasa Consumer, Nykaa (FSN E-Commerce), and Sapphire Foods from 2021 onwards.

Honasa had earmarked Rs 180 crore for advertising--more than its allocations toward setting up new EBOs (Rs 34 crore), subsidiary investment (Rs 27 crore), and general corporate purposes. Nykaa pioneered this strategy with a Rs 200 crore allocation for brand visibility.

These companies continue to spend aggressively on brand campaigns, influencer-led content, and performance marketing to scale customer acquisition.

"To create meaningful consumer recall, brands need sustained investment--short-term campaigns don't move the needle anymore," Gorakshakar added. "As competition intensifies, companies must position themselves strongly in the consumer's mind".

India's advertising landscape is evolving rapidly. According to Bain & Company, the country's overall ad market is projected to grow 10-15% annually, reaching nearly 0.5% of GDP by 2027, supported by rising consumption, favourable demographics, and digital adoption.