Fewer deals, bigger bets lift tech funding to $10.3 bn

Funding in the Indian technology ecosystem rose 7 per cent year-on-year to USD 10.3 billion during the first nine months of 2026, driven by larger deal sizes even as overall deal volumes contracted sharply, according to a report by data intelligence platform Tracxn. The total capital raised increased from USD 9.7 billion recorded in the corresponding period of 2025 and USD 10 billion in January to September, 2024.

However, deal volume slumped 38 per cent to 1,134 funding rounds in January to September, 2026, down from 1,838 rounds in the year-ago period, indicating growing capital concentration into fewer, high-conviction bets. The report, which tracked equity funding activity from January 1 to September 21, noted that India retained its position as the fifth most-funded tech geography globally, trailing the United States (444 billion), China (32.5 billion), the United Kingdom (21.9 billion), and Singapore (12.5 billion), while remaining ahead of Germany (9.9 billion) and France (8 billion).

Across investment stages, early-stage funding recorded a jump of 27 per cent to USD 4.2 billion compared to USD 3.3 billion in January to September 2025. Late-stage funding remained moderate, edging up 4 per cent to USD 5.4 billion in 2026 from USD 5.2 billion in 2025.

Conversely, seed-stage funding experienced a sharp contraction, plunging 37 per cent to USD 698 million from USD 1.1 billion a year earlier. First-time funded companies declined 30 per cent to 338, while additions to the “soonicorn” club fell 53 per cent to 76.

The nine-month period recorded 18 mega funding rounds of USD 100 million or more. Key transactions included Nxtra raising USD 1 billion in a private equity round and Neysa securing USD 600 million in a Series B round.

Sector-wise, enterprise infrastructure witnessed the sharpest surge, jumping nearly five-fold to USD 1.6 billion from USD 292 million in January to September 2025.