Indian startups raised $5.2 billion across 501 deals in the first half of 2026, marking a 9% decline from $5.7 billion raised in the same period last year, according to Inc42's Indian Tech Startup Funding Report. Despite the drop in total capital, the number of funding deals increased by 7% year-on-year, reflecting sustained investor interest amid global economic uncertainty.
The funding environment in H1 2026 showed a shift with fewer large funding rounds. Only four startups—Spinny, KreditBee, Rapido, and Sarvam—secured rounds exceeding $100 million, compared to 11 such deals in H1 2025. Spinny raised $170 million, KreditBee $280 million, Rapido $240 million, and Sarvam $234 million. Meanwhile, the median ticket size remained steady at $3 million, indicating consistent investor confidence in smaller and mid-sized rounds.
This period represents a normalization phase for the Indian startup ecosystem, which is the third largest globally. The decline in mega-rounds contributed to the overall reduction in capital inflow, continuing a trend seen in 2025 when startups raised $11 billion, down 8% from the previous year. The increase in the number of deals suggests that investors are diversifying their portfolios rather than concentrating on late-stage funding.
The report highlights that the Indian startup funding landscape is stabilizing rather than slowing down. The next comprehensive funding data will be available after the close of Q3 2026, providing further clarity on investment trends in the ecosystem.