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India's technology companies raised $10.3 billion in equity funding during the first nine months of 2026, marking a 7% increase from $9.7 billion during the same period last year, according to a report by Tracxn.
The growth came despite a sharp decline in funding activity. India recorded 1,134 funding rounds between January 1 and September 21, down 38% from 1,838 rounds in 2025. The trend indicates that a larger share of capital is moving into fewer companies through bigger transactions.
Overall, India remained the world's fifth-largest technology funding market during the period, despite a significant decline in deal volumes.
India recorded 18 funding rounds worth $100 million or more during the period. Major deals included Nxtra's $1 billion private-equity round, Neysa's $600 million Series B and CRED's $540 million Series H.
Funding trends differed across stages. Seed-stage funding declined 37% to $698 million, while early-stage funding increased 27% to $4.2 billion. Late-stage funding remained broadly stable at $5.4 billion. First-time funded companies fell 30% to 338.
Enterprise technology and AI infrastructure were among the strongest funding areas. Enterprise Infrastructure funding surged 436% to $1.6 billion, while Enterprise Applications funding rose 49% to $3.5 billion. FinTech funding increased 13% to $2.2 billion.
At the individual business-segment level, AI Infrastructure attracted $1.2 billion, followed by Digital Lending at $799 million and Payments at $773 million.
India also added six new unicorns during 9M 2026, compared with four a year earlier. The average capital raised before reaching unicorn status fell to $101 million from $205 million. The technology sector recorded 29 IPOs, while acquisitions declined 31% to 91.
Bengaluru remained the country's leading technology funding hub, attracting $4.4 billion, or 43% of total funding. Mumbai followed with $1.8 billion and Gurugram with $1.6 billion.
The growth came despite a sharp decline in funding activity. India recorded 1,134 funding rounds between January 1 and September 21, down 38% from 1,838 rounds in 2025. The trend indicates that a larger share of capital is moving into fewer companies through bigger transactions.
Overall, India remained the world's fifth-largest technology funding market during the period, despite a significant decline in deal volumes.
India recorded 18 funding rounds worth $100 million or more during the period. Major deals included Nxtra's $1 billion private-equity round, Neysa's $600 million Series B and CRED's $540 million Series H.
Funding trends differed across stages. Seed-stage funding declined 37% to $698 million, while early-stage funding increased 27% to $4.2 billion. Late-stage funding remained broadly stable at $5.4 billion. First-time funded companies fell 30% to 338.
Enterprise technology and AI infrastructure were among the strongest funding areas. Enterprise Infrastructure funding surged 436% to $1.6 billion, while Enterprise Applications funding rose 49% to $3.5 billion. FinTech funding increased 13% to $2.2 billion.
At the individual business-segment level, AI Infrastructure attracted $1.2 billion, followed by Digital Lending at $799 million and Payments at $773 million.
India also added six new unicorns during 9M 2026, compared with four a year earlier. The average capital raised before reaching unicorn status fell to $101 million from $205 million. The technology sector recorded 29 IPOs, while acquisitions declined 31% to 91.
Bengaluru remained the country's leading technology funding hub, attracting $4.4 billion, or 43% of total funding. Mumbai followed with $1.8 billion and Gurugram with $1.6 billion.
