India's AI boom could add up to $100 billion in market value through IPOs: Report

New Delhi, Oct 21
India's fast-growing artificial intelligence (AI) ecosystem could add between $50 billion and $100 billion to the country's listed market capitalisation over the next two to five years as a growing number of AI startups tap public markets, according to a report.

A report by Goldman Sachs showed that between 25 per cent and 50 per cent of nearly 70 mid-to-late-stage private AI companies in India could pursue initial public offerings over the period with listings potentially occurring at valuations averaging about four times their current estimated worth.

"The listings could broaden India's listed AI universe, bringing several under-represented segments of the AI value chain into the public markets," said Timothy Moe, co-head of Asia macro research and chief Asia-Pacific equity strategist at Goldman Sachs.

Private equity funding for Indian AI startups has tripled since 2024, while AI's share of total private equity allocations has increased fourfold to account for about one-fifth of all private capital invested in the country.

The report highlighted that India is now among the top six destinations globally for private AI funding and among the top four countries for newly funded AI companies. It also identified 84 private firms as ‘Private AI Contenders’ with a combined estimated value of $55 billion.

These companies have accounted for nearly 40 per cent of all AI-related private capital raised in India since 2025 and represent businesses across the AI value chain, the report added.

The largest opportunity lies in upstream AI enablers which the report values at around $35 billion.

The segment includes companies involved in power generation and transmission, semiconductor supply chains, chip design, quantum computing, data centres, cloud services and data management.

Goldman Sachs has estimated that upstream AI enablers could account for roughly two-thirds or 66 per cent of the potential value of future AI-related listings.