July 25, 2206: Venture capital activity slowed considerably in India this week, with startup funding garnering a total of $162 million across 17 funding deals, marking a sharp drop from the previous week’s $431 million.
The decline comes after a strong showing last week, when large funding rounds for startups such as Emergent and Udaan significantly boosted overall investment numbers. In comparison, the fourth week of July lacked any mega funding announcements, resulting in a quieter week for the startup ecosystem.
While fundraising activity continued across sectors including deeptech, fintech, healthtech and travel, investors largely backed early and growth-stage companies with moderate cheque sizes. No single funding round crossed the $100 million mark, highlighting the cautious investment approach that has persisted in recent months.
Startup Funding: Deeptech and Banking Tech Lead the Week
The biggest funding rounds of the week were jointly claimed by two companies, each raising $40 million.
Deeptech startup Raghu Vamsi Aerospace Group secured $40 million from a group of investors led by Norwest, along with Skegen Asset Management, IndusBridge Ventures, GJNX Ventures and investor Ashish Kacholia. The funding is expected to strengthen the company’s capabilities in aerospace manufacturing and defence technologies.
Banking technology company BusinessNext also raised $40 million, with enterprise software giant ServiceNow backing the round. The investment is expected to support product development and expansion across domestic and international markets.
Healthtech Remains Active
Healthtech continued to attract investor interest during the week.
Plazza raised $15 million in a funding round led by Accel, with participation from Elevation Capital, Nexus Venture Partners, All In Capital and Better Capital. The fresh capital will be used to expand its healthcare offerings and strengthen its technology platform.
Another healthtech startup, CARPL, secured $10 million from the International Finance Corporation (IFC), Stellaris Venture Partners and other investors. The company plans to use the funding to scale operations and expand its presence.
Travel Startup Joins the Funding List
Travel-focused startup 30 Sundays raised ₹61 crore (around $6.3 million) in a round led by Bessemer Venture Partners. Info Edge Ventures and Eximius Ventures also participated in the investment.
The funding is expected to help the company grow its travel platform and expand its customer base.
Funding Momentum Remains Uneven
Although investment activity continued this week, the absence of large funding rounds underscores the cautious mood among venture capital investors. Deal activity has remained inconsistent through July, with weekly funding totals largely influenced by one or two sizeable transactions.
Another noticeable trend is the limited number of large investments in India’s artificial intelligence ecosystem. While AI continues to dominate global venture capital conversations, only a handful of Indian startups in the segment have attracted significant funding this year. As a result, AI has not yet emerged as a major driver of overall funding momentum in the country.
For now, investors appear to be favouring companies with clearer business models and measured growth plans rather than writing larger cheques.
With several months still left in the year, founders and investors will be hoping that funding activity picks up during the second half of 2026, especially if market conditions improve and confidence returns to the venture capital ecosystem.
