Indian startups raised $5.2 billion in the first half of 2026, a 9% decline from the $5.7 billion secured during the same period last year, the number of deals increased by 7% to 501, indicating a shift in investor strategy.
While the overall funding amount decreased, the number of large funding rounds over $100 million fell sharply, with only four such rounds compared to 11 in the previous year. Notable deals included Spinny's $170 million, KreditBee's $280 million, Rapido's $240 million, and Sarvam's $234 million. This shift reflects a broader trend of investors spreading their capital across a wider array of startups rather than concentrating on a few large-scale investments.
Late-stage funding experienced a significant decline, dropping 27% year-on-year to $2.2 billion. The median check size also plummeted by 68% to $10 million, highlighting a cautious approach from investors towards capital-intensive late-stage tech ventures. Despite this, the number of late-stage deals only saw a slight decrease of 4% to 66.
In contrast, growth-stage startups saw a 15% increase in funding to $2.3 billion, with deal volume rising by 33% to 190 transactions. Early-stage funding also showed resilience, with seed-stage startups raising $478 million, marking an 18% increase from the previous year. The median ticket size for early-stage investments remained stable at $1 million.
Artificial intelligence (AI) startups emerged as a standout sector, raising significant amounts across numerous deals. This surge was partly driven by the government's IndiaAI Mission, which has bolstered investor confidence through support for AI infrastructure and development.
Meanwhile, traditional sectors like fintech and ecommerce faced funding reductions. Fintech startups secured $1.3 billion, a 19% decrease, while ecommerce funding fell 35% to $779 million, although it led in deal volume with 112 transactions.
Geographically, Bengaluru maintained its dominance as India's startup hub, attracting $2.7 billion across 165 deals. The city was a preferred destination for AI, fintech, and deeptech startups, with major fundraisers like CRED and Rapido based there. Delhi NCR and Mumbai followed, with $917 million and $587 million in funding, respectively.
Despite the moderation in overall funding, India added five new unicorns, including Sarvam, JusPay, KreditBee, Square Yards, and Skyroot, matching last year's tally. The startup exit landscape also evolved, with mergers and acquisitions becoming the preferred route over initial public offerings (IPOs). Indian startups recorded 52 M&A deals in the first half of 2026, aligning with last year's figures but significantly higher than the second half of 2025.
