India tech posts huge surge in IPOs, venture capital pivot to AI: Report

New Delhi, April 21 India’s tech startup ecosystem saw record high new public listings, and a clear pivot by venture capital toward artificial intelligence in FY26, a report said on Tuesday.

The report from data intelligence platform Tracxn Technologies Limited said 47 tech initial public offerings were completed in FY26, up 52 per cent from 31 the previous year, marking the highest number of listings in a decade.

The report noted that $11.7 billion was raised across 1,632 funding rounds in the year, with deal volume easing 34 per cent even as total capital dipped only 18 per cent.

“Median cheque size grew substantially, confirming that investors are concentrating capital rather than retreating from the market,” the report said.

Early‑stage funding rose 33 per cent to $4.8 billion even as early‑stage rounds fell from 492 to 420.

“The FY26 data points to deliberate recalibration. When deal volume falls 34 per cent but funding fell only 18 per cent, it means investors aren’t leaving — they’re choosing differently,” said Neha Singh, Co-Founder of Tracxn.

“The surge in IPO activity and unicorn formation point to an ecosystem that is growing up: more focused, more fundamentals-driven, and increasingly capable of generating durable value rather than just headline valuations,” Singh added.

Six new unicorns were formed in FY26, up 50 per cent year‑on‑year — bringing India’s cumulative unicorn count to 125, positioning it as the world’s third-largest unicorn ecosystem.

Bengaluru (53), Mumbai (20) and Gurugram (20) account for over 74 per cent of all unicorns. Of 94 private unicorns with available financials, only 17 are currently profitable, underscoring that margin discipline will define the next phase of the ecosystem, the report noted.

A survey of roughly 30 India-focused VC investors found 74 per cent expect conditions to improve in 2026, with AI/ML and Deep Tech tied as top sector priorities.

As much as 79 per cent of them found Vertical AI and 54 per cent cited Enterprise AI as preferred deployment categories — signalling that “the next growth phase will be defined by where intelligence gets embedded, not just deployed.”