India Tech Funding Rises 12 To 7 2 Billion In H1 2026 Report

India's technology startup ecosystem attracted $7.2 billion in funding during the first half of 2026, marking a 12% increase from a year ago, even as the number of funding rounds declined sharply, a report said on Thursday.The data compiled by Tracxn showed that Indian technology startups raised $7.2 billion across 652 funding rounds between January 1 and June 24, 2026.While total funding increased 12% compared with the same period last year, the number of deals declined 43% year-on-year.According to the report, the average cheque size has increased substantially, with the same amount of capital now being distributed among less than half the number of companies funded during H1 2025. The trend of fewer deals and larger investments has strengthened every half-year since 2022, suggesting that the shift is structural rather than cyclical.Tracxn said the Indian startup ecosystem has traded breadth for depth, with funding increasingly flowing toward stronger and more mature companies. The report noted that after startup funding peaked in 2021, overall investments declined nearly 72% by 2023 before stabilising at around $12 billion annually over the past two years.The report identified three distinct phases in the market's evolution: the funding boom of 2021, the subsequent correction through 2023, and the emergence of a more focused and disciplined investment environment. Investors are now allocating larger amounts to fewer companies, while capital is increasingly moving from consumer-focused businesses toward infrastructure and deep-tech sectors.India added five new unicorns during the first half of 2026, compared with four during the same period last year. Among them, AI-focused startups Neysa and Sarvam, both founded in 2023, achieved unicorn status within 1.3 years and 2.5 years, respectively, significantly reducing the traditional timeline required to reach a $1 billion valuation.Public market activity also strengthened during the period. A total of 13 startups completed initial public offerings in H1 2026, with the average market capitalisation rising to $297 million from $162 million a year earlier. The average time taken by startups to move from first funding to IPO declined to 8.1 years from 14.5 years, indicating that newer startup cohorts are reaching public markets more quickly and across a wider range of sectors.