January 10, 2026: India’s startup ecosystem has entered 2026 on a noticeably subdued footing, with the first week of the year delivering only $77 million in total funding across 24 deals. The figure marks a sharp decline from the $108 million raised in the previous week and extends a four‑week slide that has kept investors cautious and founders bracing for a slow start to the year.
With 24 Deals Indian Startups Funding Stays Soft in 2026
While January typically sees softer deal activity in the Indian Startups ecosystem, the broader trend suggests deeper concerns. The funding landscape in 2025 had already signaled strain, with total capital inflows falling 11% year‑on‑year to $12.1 billion, down from $13.6 billion in 2024. Despite global enthusiasm for AI‑driven innovation, Indian startup, particularly in the AI segment, have not yet captured the kind of large‑scale investments seen in other major markets. Analysts say this divergence underscores a structural gap that India will need to bridge if it hopes to ride the global AI wave.
The week’s deal composition further highlights the cautious sentiment. A majority of the activity came from pre‑Series A rounds, which typically involve smaller cheque sizes and offer limited momentum for the broader ecosystem. Without the return of late‑stage or growth‑stage deals, the funding environment is likely to remain tepid in the near term.
Still, a handful of companies managed to secure meaningful capital. Even Healthcare led the week with a $20 million raise from Lachy Groom, Alpha Wave, and Sharrp Ventures. Varthana Finance followed with a $6 million loan from WaterEquity. Among tech startups, Nitro Commerce brought in $5 million from a consortium of investors including Cornerstone Ventures, India Accelerator & Finvolve, Equentis Wealth Advisory Services, Grand Anicut Angel Fund, and Razorpay Ventures. Another tech player, Aivar, raised $4.6 million from Sorin Investments and Bessemer Venture Partners.
Industry observers expect activity to pick up later in the year as global liquidity stabilizes and India’s deep‑tech and AI sectors mature. For now, however, the startup ecosystem appears to be navigating a cautious opening chapter to 2026, waiting for the first major deal to break the lull and signal a shift in sentiment.
