Meanwhile, seed funding declined by 15 percent to USD 1.3 billion from USD 1.5 billion in 2024–25.
India Startup Funding Drops 18% in FY26, Still Ranks 4th Globally
India’s startup funding landscape showed moderation in 2025–26, with total investments falling 18 percent to USD 11.7 billion, even as the country maintained its position among the world’s top startup ecosystems.
According to a report, India ranked fourth globally in terms of funding, behind the United States, the United Kingdom and China.
A closer look at investment patterns shows variation across stages, with growth in early-stage funding and a decline in late-stage investments during the year.
Early-stage funding rose 33 percent to USD 4.8 billion, compared with USD 3.6 billion in the previous financial year and USD 3.5 billion in 2023–24.
In contrast, late-stage funding dropped 38 percent to USD 5.6 billion from USD 9.2 billion a year earlier, though it remained higher than the USD 4.7 billion recorded in 2023–24.
Meanwhile, seed funding declined by 15 percent to USD 1.3 billion from USD 1.5 billion in 2024–25.
Sectoral trends showed that financial technology and retail attracted the highest investments during the year.
