Venture Capital Investments in Indian Startups Fell by 66% in October

Venture capital (VC) funding for Indian startups reached a new low in October, showing a 66% decrease compared to October of last year. Compared to September 2025, the drop was 49%.

The total volume of venture funding in October amounted to only $581 million, whereas in October 2025, this sum reached $1.6 billion. In September 2026, the funding volume was at $1.1 billion.

There were 107 deals closed in October. This is more than the 100 deals in September, but the amount raised in September was higher. A similar situation was observed in October 2025, when the number of deals was 99.

The sharp decline in funding in October is attributed to the complete absence of large deals throughout the period. The largest deal of the month was made by Even Healthcare for $50 million. A previous similar decline was recorded in May, when the total volume reached $651 million.

These trends highlight the difficulties faced by the startup ecosystem in attracting capital. Global investors, especially from the US, are directing funds towards artificial intelligence (AI), while India does not yet have a significant number of viable AI startups.

Several AI companies in India that managed to attract funding include Sarvam, Emergent, and Neysa. This indicates that India has a long way to go in creating AI startups that interest investors.

In the first ten months of 2026, Indian startups attracted $10.4 billion, allowing the ecosystem to approach or exceed the total of $12 billion recorded in 2025.

The slow pace of funding also reflected in stage categorization. The late-stage category, which usually attracts the largest amount, received only $97 million in October. The growth category led with $250 million, followed by the early stage at $221 million.

The dominant trend for the Indian startup ecosystem over the past three years is the highest volume of activity in terms of deal count in the early-stage funding category, although this segment does not attract large sums of money.

Among the three main segments that attracted capital in October, D2C, healthtech, and automotive industry were the leaders. The AI segment attracted only $42 million this month.

The three cities that received venture funding in October remained the traditional centers: Bengaluru, Delhi-NCR, and Mumbai. Overall, these three metropolises consistently receive the vast majority of funding directed to Indian startups, although other cities such as Chennai, Hyderabad, or Pune sometimes make it into the top three.

Overall, the picture for the Indian startup ecosystem in terms of venture funding does not look positive yet, and the only hope is that the situation will improve next year.

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yourstory.comNovember 1, 10:23

Inflow of venture capital into Indian startups remained moderate in October

Venture funding for Indian startups showed a moderate pace in October, which was attributed to the absence of large deals. Throughout the month, no deal exceeding $100 million was closed, and the weekly inflow of funds remained below the $200 million mark.

In the last week of October, total funding amounted to $115 million across 29 deals, surpassing the $96 million attracted in the previous week. The largest deal this week was a $15 million investment in the medical technology startup Cent.

Despite 29 transactions in the week, no major deals emerged. Notably, two of these deals involved startups specializing in pure artificial intelligence, and it is expected that this number will increase in the coming months.

As the end of the year approaches, the inflow of venture capital into Indian startups is not expected to significantly differ from the figures of 2025. This highlights the challenges the ecosystem continues to face in attracting large volumes of capital, partly due to the lack of a strong investment history in AI in the country. However, a turning point is predicted for 2027.

The medical technology startup Cent attracted $15 million from Blume Ventures, South Park Commons, and private investors. The startup Simplismart, which focuses on AI inference infrastructure, received $14 million from Dallas Venture Capital, NVIDIA, Accel, Shastra VC, and Micromax.

The AI startup Live2 ai attracted approximately $14 million (130 crore rupees) led by IvyCap Ventures. The food and snack brand Troovy raised about $10.4 million (100 crore rupees) from Fireside Ventures, Sharrp Ventures, and other investors.

The social gaming platform Matiks attracted $10 million from General Catalyst, Ronnie Screwvala, Info Edge Ventures, Tanglin Venture Partners, and Untitled Ventures. The nutraceutical company Ace Blend received $9.91 million from 3one4 Capital and Fireside Ventures. Finally, the luxury watch manufacturer Rotoris attracted about $8.5 million (70 crore rupees) from Blume Ventures, 9Unicorns, Centricity, and private investors.

yourstory.comOctober 26, 05:00

Startup funding drops below $100 million; deep tech companies aim for global markets

Despite the AI boom stimulating data center expansion, local communities in the UK are expressing concern over noise pollution, emissions, and reduced sunlight, highlighting the environmental costs of AI development. Hundreds of such facilities are planned across the UK, fueling a debate over who benefits and who bears the costs.

Concurrently, the discovery of two critical vulnerabilities in PHP has put millions of websites and servers at risk of cyberattacks. These flaws went unnoticed for years, triggering an urgent patching campaign. Experts warn that AI could facilitate the discovery and exploitation of such weaknesses.

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Other news reports indicate that five companies plan to conduct IPOs between October 26 and 29 to raise nearly 2,600 crore rupees. Among the companies participating in the IPO process is Swara Baby Products, supported by Brainbees Solutions, the parent company of FirstCry, which is expected to announce its launch plans by November 5. These upcoming listings occur amid active primary market activity, as 104 companies have raised over 1.4 lakh crore rupees through IPOs in 2026 to date.

Key takeaways from the Indian startup market

In the third week of October, venture funding for Indian startups sharply declined due to a slowdown in deal activity and a shortage of large transactions. Startups raised $96 million across 15 deals, lower than the $180 million recorded the previous week. As major funding rounds remain limited, the ecosystem is hoping for a revival in 2027.

It is emphasized that India's deep tech ecosystem is gaining momentum thanks to improved government support, policy initiatives, and access to capital. Nevertheless, challenges persist related to talent shortages, funding gaps, and weaknesses in the manufacturing ecosystem. According to industry experts at the TechSparks 2026 event, Indian deep tech startups need to build self-confidence and focus on global markets for scaling.

yourstory.comOctober 23, 17:02

Venture capital investments in India fell below $100 million due to lack of large deals

Venture capital funding for Indian startups significantly decreased in the third week of October. The main reasons for this decline were a lower number of closed deals and the absence of high-value transactions.

During this week, total funding amounted to only $96 million across 15 deals. This contrasts with the previous week when startups raised a combined total of $180 million. Such a sharp drop highlights the difficulties that the Indian startup ecosystem continues to face in attracting a stable flow of capital.

This is the eighth instance this year where weekly venture capital funding has fallen below the $100 million mark. The only major deal for the week was Even Healthcare's raise of $50 million; the remaining deals were valued at $11 million or less. Although investors placed bets in the healthcare, consumer goods, and artificial intelligence sectors, no other significant deals were observed.

The primary challenge for the Indian startup ecosystem this year remains the low number of high-value deals. Only 16 deals worth $100 million or more were registered, which is not an encouraging sign as the end of 2026 approaches. Nevertheless, there are hopes for a revival of activity in 2027.

Specifically, Even Healthcare received $50 million from Khosla Ventures and Alpha Wave. Pant Project, a premium men's clothing brand, attracted approximately $11.4 million (109 crore rupees) from Mirae Asset Venture Investments, Sorin Investments, Alteria Capital, and family offices. The rural healthcare platform CureBay raised about $10.4 million (100 crore rupees) from IvyCap Ventures, Trifecta Capital, Alteria Capital, and VentureSoul Partners.

Additionally, the home and kitchen goods brand Chapter Home attracted about $6.6 million (63 crore rupees) from Bessemer Venture Partners, Stride Ventures, influencer Tanmay Bhat, and several family offices. The Traveltech startup TravClan received $5 million from Flipkart, August One, and Trifecta Capital. The AI startup Hunar AI raised $4.2 million (40 crore rupees) from Blume Ventures, Hyderabad Angels Fund, Together Fund, Seedstars, AVNM Ventures, and the startup's founders themselves.