India’s technology ecosystem ranked fourth globally in funding in FY 2025-26, with startups raising $11.7 billion during the period, according to Tracxn’s India Tech Annual Funding Report 2026.
The funding marked an 18% decline from $14.3 billion in FY 2024-25, but a 20% increase compared with $9.7 billion raised in FY 2023-24.
The United States, China and the United Kingdom retained the top three positions, while India ranked ahead of countries such as Germany and France.
Funding trconcludes varied across stages. Seed-stage startups raised $1.3 billion, down 15% from $1.5 billion in the previous fiscal.
Early-stage funding displayed strong growth, rising 33% to $4.8 billion from $3.6 billion in FY 2024-25, and increasing 37% from $3.5 billion in FY 2023-24.
Late-stage funding stood at $5.6 billion, declining 38% from $9.2 billion in FY 2024-25, but up 18% compared with $4.7 billion in FY 2023-24.
Commenting on the insights, Neha Singh, Co-Founder of Tracxn, stated, “While overall funding saw moderation,, the strong momentum in early-stage investments highlights continued investor confidence in startups building differentiated and scalable solutions.”
“The sustained traction in sectors such as Enterprise Applications, FinTech, and Retail reflects the growing importance of technology-led transformation across industries. Additionally, increased IPO activity and unicorn creation indicate improving maturity within the ecosystem, with companies demonstrating stronger fundamentals, capital efficiency, and clearer paths to profitability.”
In FY 2025-26, India witnessed 13 funding rounds of $100 million+, compared to 23 such rounds in FY 2024-25 and 13 in FY 2023-24. Large deals were driven primarily by the Enterprise Infrastructure, Enterprise Applications, and Fintech with companies raising notable capital including Nxtra’s $710 million PE round, Neysa’s $600 million Series B round, and Inox Clean Energy’s $344 milllion Series D funding.
The report highlights that Enterprise Applications, Fintech, and Retail emerged as the top-performing sectors in FY 2025-26.
Enterprise Applications received $3.6 billion in FY 2025-26, same as in FY 2024-25, but a 23% increase from $2.9 billion raised in FY 2023-24.
Fintech secured $2.4 billion in funding, marking a 14% increase from $2.1 billion in FY 2024-25 and a 27% rise compared to $1.9 billion raised in FY 2023-24.
Retail raised $2.4 billion in FY 2025-26, registering a 32% decline from $3.5 billion in FY 2024-25 and a 19% decrease compared to $2.9 billion raised in FY 2023-24.
India’s tech startup ecosystem recorded 129 acquisitions in FY 2025-26, compared to 151 acquisitions in FY 2024-25, marking a 15% decline in acquisitions activity during the year. The number of acquisitions also saw a 2% drop compared to 132 acquisitions in FY 2023-24.
On the IPO front, India Tech recorded 47 IPOs in FY 2025-26, marking a 52% increase over 31 IPOs in FY 2024-25 and a 47% rise compared to 32 IPOs in FY 2023-24. Major IPOs during the year included Lenskart, Groww, and Meesho.
There were 6 unicorns created in FY 2025-26, reflecting a 50% increase compared to 4 in FY 2024-25, and in FY 2023-24.
City-wise, Bengaluru accounted for 33% of total funding, maintaining its position as India’s leading startup hub, followed by Mumbai with 21% of total funding.
On the investor front, Inflection Point Ventures, Rainmatter, and Venture Catalysts emerged as the most active seed-stage investors in the India Tech ecosystem in FY 2025-26.
Peak XV Partners, Accel, and Lightspeed Venture Partners led early-stage investments, while Sofina, Elev8, and Lathe Investment were the top late stage investors in India Tech ecosystem for FY 2025-26.
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