February 2, 2026: India Startup witnessed a muted deals during the final week of January. Startups raised $152 million across 22 deals, a significant drop from the previous week’s $373 million raised through 40 transactions. The investment sentiment though muted for startups seeking capital, investors continue to stay cautious and writing smaller cheques.
The capital inflow was moving at a snail pace, but conviction is selective. After three consecutive weeks of improving momentum, venture funding slowed sharply as big-ticket cheques stayed off the table and deal volume thinned out.
VC Momentum Breaks: Funding in India Startup Ecosystem Falls After 3-Week Rise
Funding activity spanned stages from pre-Series A to Series D, but the average deal size shrank noticeably. Even stage-wise participation was thinner, reinforcing a pattern that has defined much of the last year: investors are present, but they are not aggressive.
Sector-wise, the deals across India Startups were scattered across fintech, spacetech, healthcare, AI, and semiconductors. While diversification sounds healthy, it also highlights a key reality, India’s VC market currently lacks a dominant theme that can pull in outsized capital. In most weeks, overall funding numbers are lifted by one or two mega rounds. This week had none.
That absence mattered. Historically, funding momentum in India startup spikes when late-stage or crossover investors step in with large cheques. Without them, even a decent number of early and mid-stage deals fails to move the needle.
The broader context remains challenging. Venture funding in 2025 is already down 11% compared to 2024, underlining that the funding winter hasn’t fully thawed. While investors continue to engage with founders, they are prioritising capital efficiency, clearer revenue paths, and sharper differentiation.
Still, the mood isn’t bleak, just restrained. The steady activity across sectors suggests long-term interest hasn’t faded. What’s missing is confidence at scale. For now, optimism in the ecosystem remains cautious, waiting for a trigger that can convert interest into conviction.
January Ends Soft as Indian Startups See Fewer, Smaller Deals
- Spacetech startup The Guild raised $20.5 million from TDK Ventures, BIG Capital, Accel, Prosus, Yournest, Campus Fund, BlueHill, and Riceberg
- Precision oncology firm 4baseCare secured Rs 90 crore ($9.8 million approx.) from Ashish Kacholia, Lashit Sanghvi, and Yali Capital
- AI startup SpotDraft raised $8 million from Qualcomm Ventures
- Semiconductor AI startup Agrani Labs raised $8 million led by Peak XV Partners
- Healthtech startup Nivaan Care raised $7 million from Sorin Investments, W Health Ventures, Endiya Partners, and Rebright Partners
