Indian startup funding falls 47.5% to $678 million in October
Indian startups raised about $678 million in October 2026, down 47.5% from September, with no round of $100 million or more, Entrackr's monthly report says.
Indian startups raised about $678 million (roughly $677.8 million) across 108 deals in October 2026, a fall of 47.5% from $1.29 billion in September and 60.8% below the $1.73 billion raised in October 2025, according to Entrackr's monthly funding report. The main drag was the absence of any round of $100 million or more. Only two startups, Tessolve and Even Healthcare, raised more than $50 million. The figures are Entrackr's own tally, so they may differ from other trackers.
What the October numbers say
Entrackr counts 108 deals for the month: 20 growth or late-stage deals that raised $414.6 million, 79 early-stage deals worth $263 million, and nine whose amounts were not disclosed. No layoffs were reported in the month.
The biggest cheques were modest by recent standards. Among growth-stage rounds, Entrackr lists Tessolve Semiconductor at $75 million, Even Healthcare at $50 million, Boldfit at $42 million, DailyObjects at $35 million and RapidCanvas at $29 million. In early-stage rounds, the largest were AuxoAI at $20.7 million, Cent at $15 million, and Mesa School of Business and Confido Health at $12.5 million each.
For the year so far, Entrackr says Indian startups have raised nearly $11 billion in 2026, with February and June the strongest months at close to $2 billion each.
Where the money went, and where it did not
By city, Bengaluru took $420 million across 52 deals, which is 61.97% of the month's total. Delhi-NCR followed with $110.26 million across 18 deals, then Mumbai with $57.53 million across 11 deals, Hyderabad with $41.22 million across five and Bhubaneswar with $11.5 million from a single deal.
By sector, e-commerce led with $182.69 million across 27 deals. AI came next with $131.12 million across 22 deals, then healthtech with $104.61 million across 13 deals. Semiconductors, which is one deal (Tessolve), took $75 million, and manufacturing $36.67 million across four.
By stage, Series B rounds raised $209.34 million across 10 deals, Series A $135.35 million across 17, seed $80.41 million across 41, Series C $61.5 million across three and pre-Series A $23.24 million across seven. Put simply, there were many small seed cheques and few large late-stage ones. A Series A is the first sizeable round after a seed, and a Series B or C comes as a company scales up.
Deals, exits and a few notable moves
Entrackr counts five mergers and acquisitions in the month. Freshworks bought the AI startup Robusta, Cent acquired Medsee, Protectt.ai took over AIShield, Marico acquired Satya Nutraceuticals for $110 million, and Hoola Health acquired UpTodd. Marico's purchase is the biggest by value.
The report also records several stock market events that are separate from funding. Jio Platforms made a major market debut in October, followed by listings of Zetwerk and AceVector, the operator of Snapdeal. Hunger Pangs, the company behind Burma Burma, filed a draft prospectus for an IPO with a fresh issue of up to Rs 600 crore. It also notes that Snabbit's Q2 FY27 net transaction value was Rs 72 crore, close to Urban Company's InstaHelp at Rs 71 crore.
One detail captures the mood among investors: Zorit, formerly Bijnis, raised funds from investors including Sparrow Capital and Info Edge Capital, even though Info Edge had written off its full 2023 investment in the company, according to the report.
Why the total fell, and what is not yet known
Entrackr's own explanation is plain. October lacked mega-rounds, and the slowdown points to what it calls a more selective investment climate. Funding totals swing with a few large cheques, so a month with no round above $100 million will look weak even if the number of deals holds up. The report counts 108 deals, but this site has not been given the matching count for September, so whether deal volume fell as much as value is not known from this source.
There is also a difference between a monthly dip and a trend. September's $1.29 billion was itself a strong month, so October's fall is measured against a high base. Year to date, the pace is still close to $11 billion, and the two strongest months were each near $2 billion. The report does not say what happened to valuations, and it does not say how many rounds were cut, delayed or took longer to close.
Finally, one source is behind all of the figures. Funding trackers sometimes classify rounds differently, treating a company's Indian operations, a foreign-parent round or a debt facility in different ways, so cross-checks matter before anyone uses a single month's number in a decision.
How to read a monthly funding total
A monthly funding number is a sum of a few large cheques and many small ones, so it is lumpy. In October, the 20 growth and late-stage deals raised $414.6 million, which is about 61% of the total, while the 79 early-stage deals raised $263 million. The ratio shows that a handful of rounds decides the month. If one $150 million round had closed in October, the total would have been about $828 million and the fall from September would have looked much smaller.
For that reason, analysts usually read three months or a year together, and compare deal counts alongside dollars. Entrackr's year-to-date figure of nearly $11 billion with two near-$2 billion months is a better guide to the year's direction than any one month.
What it means for founders and investors
For a founder planning a raise, the data says money is available but selective. Seed and Series A still account for most deals by count: 41 seed rounds and 17 Series A in October. Larger cheques are rarer, so a company counting on a big late-stage round is competing for few slots. Investors, for their part, are spreading bets across early-stage companies while holding back on large late-stage rounds.
For employees and job seekers, the absence of reported layoffs in the month is a mild positive, though funding droughts usually show up in hiring and cash runways later. For readers following fintech, the report's sector table does not show fintech among the leaders, where e-commerce, AI and healthtech led.
A funding round also costs the founders part of the company. The simulator below shows how a round changes ownership. The defaults are an example, and not tied to any company in the report: the amount raised and the valuation are illustrative, and the report does not give valuations.
The second simulator takes the report's own forecast. Entrackr says that if funding averages $1 billion in each of the remaining two months, 2026 could pass the $13 billion recorded in 2023; otherwise it could be the lowest annual total in three years.
What to watch next
Watch November's funding report, due in early December, for a return of rounds of $100 million or more. Watch also whether the IPO pipeline widens: Entrackr points to Jio Platforms, Zetwerk and AceVector already listed and to Hunger Pangs' draft filing. Third, watch the average monthly total in the remaining two months against the $1 billion that would be needed to pass 2023's $13 billion.
Key takeaways
- Indian startups raised about $678 million across 108 deals in October 2026, down 47.5% from September and 60.8% from October 2025, according to Entrackr.
- No round reached $100 million, and only Tessolve ($75 million) and Even Healthcare ($50 million) crossed $50 million.
- Bengaluru took 61.97% of the money, and e-commerce, AI and healthtech were the top sectors.
- Entrackr says 2026 could pass 2023's $13 billion if the remaining two months average $1 billion each, or be the lowest year in three years if not.
Sources
- [Entrackr: Indian startup funding nosedives 47.5% to $678 Mn in October](https://entrackr.com/monthly-funding-report-monthly-funding-report/indian-startup-funding-nosedives-475-to-678-mn-in-october-12775014)
Tags: Startup funding Startups Funding Entrackr Venture capital