Indian AI Startups Could Add $100 Billion to Market Cap by IPOs

Goldman Sachs estimates that prospective IPOs by Indian AI startups could add $50 billion to $100 billion to the country's market capitalisation over the next two to five years. The projection rests on a specific set of assumptions about how these private companies mature and list — not on deals already signed.

Private equity investment in Indian AI startups tripled in 2025 to $5 billion, up from $1.6 billion in 2024, according to the Goldman Sachs report published Wednesday. The brokerage counts 84 "Private AI Contenders" currently valued at around $55 billion. That $55 billion sits in private markets today; the $50-100 billion figure is what listings could add on top.

"We estimate approximately USD 50 billion to USD 100 billion in incremental market cap could be added to India's listed AI complex from prospective IPOs over the next 2-5 years, assuming 25-50 per cent of the ~70 mid-to-late stage Private AI Contenders list at a weighted average 4x valuation step-up," the report said. Two assumptions carry the weight: that a quarter to half of roughly 70 mid-to-late-stage companies actually go public, and that they command a fourfold valuation step-up at listing. Neither outcome is guaranteed.

The 84 contenders span the full AI value chain, Goldman Sachs said. The group runs from Upstream AI Enablers building foundational infrastructure, through Midstream AI Core Engines conducting core model research and development, to Downstream AI Adopters applying AI and machine learning across end-markets. Their maturity ranges from early-stage to mid-to-late-stage.

Where does India stand in global AI funding?

Citing a Stanford University report, Goldman Sachs said India ranked as the sixth-largest destination for private AI funding globally in 2025 — ahead of most major economies outside the US, China, UK, France and Canada. India also recorded the fourth-largest number of newly funded AI companies worldwide, trailing only the US, the UK and China.

The share of total PE funding directed toward Indian AI startups has climbed from roughly 5 per cent in 2024 to 20 per cent in 2026, a four-fold increase in capital allocation intensity in two years. "This scale of funding challenges a broad perception we hear from investors that India is peripheral to the global AI buildout," Goldman Sachs said. Notably, the data shows money arriving; it does not yet show exit returns for investors.

The report lands amid a pointed debate. Experts blame the lack of AI-themed stocks for foreign institutional investors exiting Indian equity markets. If even the low end of Goldman's range materialises, India's exchanges would gain a genuine AI listings pipeline they currently lack.

Separately: IndusInd Securities names Rajeev Srivastava MD & CEO

In an unrelated appointment, IndusInd Securities on Friday named Rajeev R Srivastava as managing director and CEO. Srivastava previously served as MD & CEO of Standard Chartered Securities and brings nearly 25 years of experience across banking, financial services and capital markets, the company said in a statement.

IndusInd Securities — formerly Reliance Securities Ltd, a subsidiary of IndusInd Capital and part of IndusInd International Holdings Ltd (IIHL) — said Srivastava will lead its next phase of growth, with a mandate to build a technology-first investment platform. A key priority will be using data and artificial intelligence to deliver personalised research and advice, along with expanding into new geographies.

His brief pairs neatly with the market backdrop: a broking house betting on AI-driven advice just as investors complain India offers too few AI stocks to buy.