Indian Tech Startup Funding Report Q1 2026 - Inc42 Media
India’s startup ecosystem is entering a clear reset. Funding fell 26% YoY to $2.3 Bn in Q1 2026, with zero $100 Mn+ deals for the first time since 2022, marking a decisive pullback in late-stage capital. In contrast, early-stage funding jumped 58%, signalling a shift from scaling mature companies to backing new, technology-led bets. Investor behaviour is also being reshaped by geopolitics. With 73% of portfolios impacted by the West Asia crisis, capital is moving closer to home, 74% of investors now favour Indian LPs, while confidence in Gulf capital remains limited at 34%. Even in AI, conviction is tempered by discipline. While 48% of investors see it as the most investment-ready sector, fewer than 10% are willing to pay premium valuations, underscoring a market driven by selectivity, not hype. This report brings together these shifts across funding, M&A activity, public markets, and investor sentiment to map how India’s startup ecosystem is evolving in Q1 2026.
No discussion yet. Be the first to share your thoughts!