Police said the shooting happened just after midnight amid a fight outside the Five Guys restaurant East Kirkwood Avenue.
About 2,000 to 3,000 people were in the area at the time celebrating the collegiate bike race.
Bloomington police said five people were injured by gunfire. All victims were women aged 17, 18, 20, 21, 22.
All victims but one were released from the hospital. The victim in the hospital was in stable condition, police said.
Four other people were injured in the chaos of the shooting, meaning they had scraps and cuts, police said.
Indiana University police confirmed that the victims were not students.
Police believe there were at least two gunmen.
Bloomington Mayor Kerry Thomson addressed the shooting saying, "there is no place for gun violence in our city."
Anyone with information on the shooting is urged to contact police.