Goldman Sachs Sees Up to $100 Billion IPO Boost for India's AI Startups - Startup Funding India, October 2026

India's artificial intelligence sector could add a significant $50 billion to $100 billion to the nation's listed market capitalisation over the next two to five years, according to a recent Goldman Sachs report published on October 21, 2026 - a landmark data point for startup funding in India.

The report indicates that between 25% and 50% of nearly 70 mid-to-late-stage private AI companies in India might opt for initial public offerings during this period, with listings potentially occurring at valuations approximately four times their current estimated worth. Timothy Moe, co-head of Asia macro research and chief Asia-Pacific equity strategist at Goldman Sachs, said the listings would broaden India's listed AI landscape and bring under-represented segments of the AI value chain into public view.

Private equity funding for Indian AI startups has tripled since 2024, rising from around $1.6 billion in 2024 to about $5 billion in 2025, with funding in the first eight to nine months of 2026 already matching the previous year's total. AI's share of total private equity allocations has quadrupled to account for about one-fifth of all private capital invested in the country.

India's global standing in the AI funding race

Citing Stanford University's 2026 AI Index Report, Goldman Sachs said India ranked sixth globally for private AI funding in 2025 and fourth for the number of newly funded AI companies. It identified 84 private firms as 'Private AI Contenders' with a combined estimated value of $55 billion, accounting for nearly 40% of all AI-related private capital raised in India since 2025. The largest opportunity lies in upstream AI enablers - power, semiconductors, data centres, cloud and data management - valued at around $35 billion.