Synopsis
Indian tech startups raised USD 11.7 billion in FY 2025-26, an 18% drop from the previous year. Despite this, early-stage funding saw a 33% surge. India remained the fourth-highest funded country globally. FinTech and Enterprise Applications led sector funding. The year also saw a significant rise in IPOs and unicorn creation.The technology startups had raised USD 14.3 billion in the financial year 2025.
"India's startups raised USD 11.7 billion in FY 2025-26, marking an 18 per cent decline from USD 14.3 billion in FY 2024-25, but a 20 per cent increase compared to USD 9.7 billion raised in FY 2023-24," Tracxn's India Tech Annual Funding Report 2026 said.
According to the report, India ranked as the fourth-highest funded country globally in FY 2025-26, behind the US, UK, and China, and ahead of Germany and France.
The funding of seed-stage startups declined by 15 per cent to USD 1.3 billion in FY26 from USD 1.5 billion raised in FY25.
"Early-stage funding (when start-ups plan to scale up business) showed strong momentum, rising to USD 4.8 billion in FY26, a 33 per cent increase from USD 3.6 billion raised in FY 2024-25, and a rise of 37 per cent compared to USD 3.5 billion raised in FY 2023-24.
"Late-stage startups raised USD 5.6 billion in FY26, marking a 38 per cent decline from USD 9.2 billion raised in FY25, but an 18 per cent increase compared to USD 4.7 billion raised in FY24," the report said.
In 2025-26, India witnessed 13 funding rounds of more than USD 100 million, compared to 23 such rounds 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 said.
FinTech and retail emerged as the top-performing sectors in FY 2025-26.
Enterprise Applications received USD 3.6 billion in 2025-26, which is the same as in FY25, but a 23 per cent increase from USD 2.9 billion raised in FY24.
FinTech firms secured USD 2.4 billion in funding, marking a 14 per cent increase from USD 2.1 billion in FY25 and a 27 per cent rise compared to USD 1.9 billion raised in FY24.
Funding of retail startups declined by 32 per cent to USD 2.4 billion in FY26 from USD 3.5 billion in 2024-25 and a 19 per cent decrease compared to USD 2.9 billion raised in FY24.
"On the IPO front, India Tech recorded 47 IPOs in FY 2025-26, marking a 52 per cent increase over 31 IPOs in FY 2024-25 and a 47 per cent rise compared to 32 IPOs in FY 2023-24.
"Major IPOs during the year included Lenskart, Groww, and Meesho. There were 6 unicorns created in FY 2025-26, reflecting a 50 per cent increase compared to 4 in FY 2024-25," the report said.
