funding declined by 15 percent to USD 1.3 billion in FY26, from USD 1.5 billion in FY25. In 2025-26, India witnessed 13 funding rounds of more than USD 100 million, compared with 23 in FY25 and 13 in 2023-24.
“Large deals were driven primarily by the Enterprise Infrastructure, Enterprise Applications, and Fintech with companies raising notable capital, including Nxtra’s USD 710 million PE round, Neysa’s USD 600 million Series B round, and Inox Clean Energy’s USD 344 million Series D funding,” the report stated.
Neha Singh, Co-Founder of Tracxn, stated the divergence reflects evolving investor priorities. “While overall funding saw moderation, strong momentum in early-stage investments highlights continued investor confidence in startups building differentiated and scalable solutions,” she stated.
On a city-wise basis, Bengaluru retained its position as India’s leading startup hub, accounting for 33% of total funding, followed by Mumbai with a 21% share.
Inflection Point Ventures, Rainmatter and Venture Catalysts were the most active seed-stage investors, while Peak XV Partners, Accel and Lightspeed Venture Partners led early-stage funding. Sofina, Elev8, and Lathe Investment emerged as key late-stage investors during the year.
Leave a Reply