January 10, 2026: A muted first week of 2026 has signaled yet another cautious chapter for India’s startup ecosystem. Investors appear to be holding back fresh capital, and founders are entering the new year with a familiar sense of restraint. While January typically begins on a slower note, the latest numbers suggest deeper structural concerns that continue to weigh on the country’s innovation economy.
The week’s total funding stood at just $77 million across 24 deals, well below the $108 million raised in the previous week. More importantly, this marks the fourth consecutive week of declining capital inflows, reinforcing the sense that India’s funding winter is far from over.
The broader picture from 2025 adds to the unease. Total funding for the year fell 11% year‑on‑year, slipping to $12.1 billion from $13.6 billion in 2024. Despite global enthusiasm for AI-led innovation, Indian startups, particularly in the AI segment, have not yet seen the kind of large-scale backing their global counterparts enjoy.
Early-Stage Funding Deals Dominate, Big Cheques Still Missing
Most of the week’s activity came from pre‑Series A rounds, a segment known for modest ticket sizes. Without the return of late‑stage or growth‑stage deals, analysts believe the ecosystem will struggle to regain momentum in the near term.
Investors remain selective, and founders are recalibrating expectations as they navigate a market still shaped by caution, cost discipline, and a renewed focus on profitability.
Key Deals of the Week
- Even Healthcare secured $20 million from Lachy Groom, Alpha Wave, and Sharrp Ventures.
- Varthana Finance raised a $6 million loan from WaterEquity.
- Nitro Commerce, a tech startup, brought in $5 million from Cornerstone Ventures, India Accelerator & Finvolve, Equentis Wealth Advisory Services, Grand Anicut Angel Fund, Razorpay Ventures, and others.
- Aivar, another tech player, raised $4.6 million from Sorin Investments and Bessemer Venture Partners.
What to Watch
Industry observers expect funding activity to pick up later in the year as global liquidity stabilizes and India’s AI and deep‑tech sectors mature. For now, however, the ecosystem appears to be in a holding pattern, waiting for the first big deal of 2026 to break the lull.
