India startup ecosystem sees significant funding shifts in semiconductor, fintech, and space sectors

India's startup ecosystem is experiencing significant shifts in funding patterns across several key sectors. In the semiconductor industry, startups have raised approximately $206 million since 2022. A report from Speciale Invest indicates that investors are increasingly concentrating capital on later-stage companies closer to commercialization, with $61.9 million raised in the first half of 2026 alone.

In the fintech sector, India raised over $2.2 billion across more than 100 funding rounds in the first half of 2026. This growth is characterized by a concentration of capital in established players, with late-stage fintechs receiving more than 70% of total funding. Bengaluru remains a dominant hub, accounting for nearly 70% of this activity.

Venture capital firms are also expanding their commitments to the region. Accel has closed an oversubscribed $550 million India-focused fund, targeting sectors such as AI, fintech, and advanced manufacturing. Additionally, Mirae Asset Venture Investments India has reached the first close of its second fund at ₹1,125 crore ($117.9 million), aiming to support Series B to Series D startups.

The space technology sector is also seeing growth, with approximately 440 registered startups in India. The Indian National Space Promotion and Authorisation Centre (IN-SPACe) has granted 113 authorisations to 52 entities, with private companies expected to undertake more than eight commercial rocket launches over the next two years.