India’s expertise ecosystem ranked fourth globally in funding in FY 2025-26, with startups elevating $11.7 billion throughout the interval, in line with Tracxn’s India Tech Annual Funding Report 2026.

The funding marked an 18% decline from $14.3 billion in FY 2024-25, however a 20% improve in contrast with $9.7 billion raised in FY 2023-24.

America, China and the UK retained the highest three positions, whereas India ranked forward of nations reminiscent of Germany and France.

Funding traits diverse throughout phases. Seed-stage startups raised $1.3 billion, down 15% from $1.5 billion within the earlier fiscal.

Early-stage funding confirmed sturdy development, rising 33% to $4.8 billion from $3.6 billion in FY 2024-25, and growing 37% from $3.5 billion in FY 2023-24.

Late-stage funding stood at $5.6 billion, declining 38% from $9.2 billion in FY 2024-25, however up 18% in contrast with $4.7 billion in FY 2023-24.

Commenting on the insights, Neha Singh, Co-Founding father of Tracxn, mentioned, “Whereas general funding noticed moderation,, the sturdy momentum in early-stage investments highlights continued investor confidence in startups constructing differentiated and scalable options.”

“The sustained traction in sectors reminiscent of Enterprise Functions, FinTech, and Retail displays the rising significance of technology-led transformation throughout industries. Moreover, elevated IPO exercise and unicorn creation point out bettering maturity inside the ecosystem, with corporations demonstrating stronger fundamentals, capital effectivity, and clearer paths to profitability.”

In FY 2025-26, India witnessed 13 funding rounds of $100 million+, in comparison with 23 such rounds in FY 2024-25 and 13 in FY 2023-24. Massive offers have been pushed primarily by the Enterprise Infrastructure, Enterprise Functions, and Fintech with corporations elevating notable capital together with Nxtra’s $710 million PE spherical, Neysa’s $600 million Sequence B spherical, and Inox Clear Vitality’s $344 milllion Sequence D funding. 

The report highlights that Enterprise Functions, Fintech, and Retail emerged because the top-performing sectors in FY 2025-26.

Enterprise Functions acquired $3.6 billion in FY 2025-26, similar as in FY 2024-25, however a 23% improve from $2.9 billion raised in FY 2023-24.

Fintech secured $2.4 billion in funding, marking a 14% improve from $2.1 billion in FY 2024-25 and a 27% rise in comparison with $1.9 billion raised in FY 2023-24.

Retail raised $2.4 billion in FY 2025-26, registering a 32% decline from $3.5 billion in FY 2024-25 and a 19% lower in comparison with $2.9 billion raised in FY 2023-24. 

India’s tech startup ecosystem recorded 129 acquisitions in FY 2025-26, in comparison with 151 acquisitions in FY 2024-25, marking a 15% decline in acquisitions exercise throughout the yr. The variety of acquisitions additionally noticed a 2% drop in comparison with 132 acquisitions in FY 2023-24.

On the IPO entrance, India Tech recorded 47 IPOs in FY 2025-26, marking a 52% improve over 31 IPOs in FY 2024-25 and a 47% rise in comparison with 32 IPOs in FY 2023-24. Main IPOs throughout the yr included Lenskart, Groww, and Meesho.

There have been 6 unicorns created in FY 2025-26, reflecting a 50% improve in comparison with 4 in FY 2024-25, and in FY 2023-24.

Metropolis-wise, Bengaluru accounted for 33% of complete funding, sustaining its place as India’s main startup hub, adopted by Mumbai with 21% of complete funding.

On the investor entrance, Inflection Level Ventures, Rainmatter, and Enterprise Catalysts emerged as essentially the most energetic seed-stage traders within the India Tech ecosystem in FY 2025-26.

Peak XV Companions, Accel, and Lightspeed Enterprise Companions led early-stage investments, whereas Sofina, Elev8, and Lathe Funding have been the highest late stage traders in India Tech ecosystem for FY 2025-26.