India SME IPOs raise Rs 3,752 cr in H1 2026 as startup funding slows

In the first half of calendar year 2026, 78 Indian small and medium enterprises raised a total of Rs 3,752 crore through initial public offerings, according to a B2K Analytics report. Primary capital accounted for about Rs 3,555 crore (95 % of the issue size), while the Offer for Sale component fell to Rs 197 crore. The number of listings dropped to 78 from 88 in the prior half‑year, but the total funds raised remained only slightly below the Rs 4,004 crore raised in H1 2025, indicating continued investor interest. Q2 2026 alone saw 38 SME listings that generated nearly Rs 1,891 crore.

During the same period, Indian venture‑capital activity slowed. Between July 18 and July 24, startups secured about $209 million across 14 deals, a 26 % decline from the previous week’s $281 million. Four large rounds – Zetwerk ($52 million), Veriqus ($40.1 million), BUSINESSNEXT ($40 million) and Raghu Vamsi Aerospace ($40 million) – contributed over 80 % of the weekly total. Funding for AI projects was minimal, with only a $259 k deal recorded.