According to Tracxn’s India Tech Annual Funding Report 2026, India’s tech start-ups raised $11.7 billion in FY26, marking an 18 per cent decline from $14.3 billion in FY25, but a 20 per cent increase compared to $9.7 billion raised in FY24. India ranked as the fourth-highest-funded country globally in FY26, behind the US, the UK and China, but ahead of Germany and France.
India’s tech start-up ecosystem recorded 129 acquisitions in FY26, compared to 151 acquisitions in FY25 – a 15 per cent decline during the year, according to the report. The number of acquisitions also saw a 2 per cent drop compared to 132 acquisitions in FY24.
Resulticks stood out with a $2 billion acquisition by Diginex, making it the highest-valued acquisition in FY26, followed by Brahma’s acquisition by Polymarket at a deal value of $1.2 billion.
On the IPO front, India Tech recorded 47 IPOs in FY26, marking a 52 per cent increase over 31 IPOs in FY25 and a 47 per cent rise compared to 32 IPOs in FY24. Major IPOs during the year included Lenskart, Groww, and Meesho. There were 6 unicorns created in FY26, reflecting a 50 per cent increase compared to 4 each in FY25 and in FY24.
Early-stage firms gain
Funding trends varied across stages. Seed-stage start-ups raised $1.3 billion in FY26, marking a 15 per cent decline from $1.5 billion raised in FY25 and in FY24. Early-stage funding showed strong momentum, rising to $4.8 billion in FY26, up 33 per cent from $3.6 billion raised in FY25, and 37 per cent compared to $3.5 billion raised in FY24. Late-stage start-ups raised $5.6 billion in FY26, declining 38 per cent from $9.2 billion raised in FY25, but a 18 per cent increase compared to $4.7 billion raised in FY24.
Neha Singh, Co-Founder of Tracxn, said, “While overall funding saw moderation, the strong momentum in early-stage investments highlights continued investor confidence in start-ups building differentiated and scalable solutions. The sustained traction in sectors such as enterprise applications, fintech, and retail reflects the growing importance of technology-led transformation across industries. Additionally, increased IPO activity and unicorn creation indicate improving maturity within the ecosystem, with companies demonstrating stronger fundamentals, capital efficiency, and clearer paths to profitability.”
In FY26, India witnessed 13 funding rounds, each of which raised over $100 million, compared to 23 such rounds in FY25 and 13 in FY24. Large deals were driven primarily by the enterprise infrastructure, enterprise applications and fintech with companies raising notable capital including Nxtra’s $710 million PE round, Neysa’s $600 million Series B round, and Inox Clean Energy’s $344 million Series D funding.
Published on April 8, 2026