India tech funding reaches $10.3 billion despite drop in deal count

India’s technology sector raised $10.3 billion in equity funding during the first nine months of 2026, representing a 7% increase from the $9.7 billion recorded during the same period in 2025. Despite the rise in total capital, the number of funding rounds decreased by 38% to 1,134, signaling a shift toward more selective investing.

Investors are increasingly concentrating capital into fewer, larger deals for established companies. Seed-stage funding dropped 37% to $698 million, while early-stage funding rose 27% to $4.2 billion. The number of first-time funded companies also fell by 30% to 338. Notable large-scale transactions included a $1 billion private-equity round for Nxtra, a $600 million Series B for Neysa, and a $540 million Series H for CRED.

Sector-specific trends show massive growth in AI and enterprise sectors. AI infrastructure emerged as the largest individual funding category, attracting $1.2 billion. Enterprise infrastructure saw the most dramatic surge, with funding increasing 436% to $1.6 billion. Other significant areas included enterprise applications, which grew 49% to $3.5 billion, and fintech, which saw a 13% increase to $2.2 billion.