TICE Funding Index: $705 Mn Week Signals AI-Led Capital Surge, But Ecosystem Breadth Remains Thin

After weeks of muted activity hovering around the $200 million mark, India’s startup ecosystem witnessed its strongest funding week of 2026 so far.

Between February 14 and February 20, Indian startups collectively raised $705 million across 21 deals, marking a 3.4x jump over the previous week’s $203 million. However, beneath the headline spike lies a more nuanced story: one mega AI deal skewed the data, while broader capital distribution across stages remains cautious.

TICE Funding Index

• Total Funding: $705 million

• Total Deals: 21

• Week-on-Week Growth: +247%

• Largest Deal: Neysa ($600 million)

• Previous Week Funding: $203 million

This week’s surge was overwhelmingly driven by a single transaction — AI cloud startup Neysa’s $600 million raise, accounting for nearly 85% of total capital deployed during the week.

The Deal That Changed The Week: Neysa’s $600 Mn AI Bet

AI infrastructure startup Neysa secured $600 million in funding from Blackstone, Teachers’ Venture Growth (TVG), TVS Capital, 360 ONE Assets, and Nexus Venture Partners.

The deal signals three broader ecosystem trends:

1. Institutional capital is warming up to AI infrastructure

2. Global investors are doubling down on India’s deeptech play

3. Large-ticket late-stage investments are back — selectively

The timing is notable. The funding coincided with the India AI Impact Summit 2026 in New Delhi, where multiple global corporations announced multi-billion-dollar AI and semiconductor commitments in India. While policy push and corporate capex momentum are rising, startup-level capital is consolidating around defensible, infrastructure-led AI plays.

Funding Breadth Remains Narrow

Despite the impressive headline number, funding activity across early-stage and growth startups remained relatively muted.

Without Neysa’s deal, the ecosystem would have recorded just $105 million across 20 deals — indicating that:

• Capital concentration remains high

• Risk appetite for early-stage ventures continues to be measured

• There is no singular cross-sector theme driving broad-based deployment

The Indian startup funding cycle continues to show signs of selective conviction rather than expansive optimism.

Other Key Deals This Week

🔹 Stable Money (Fintech) — $25 Mn

Raised from Peak XV Partners, Z47, RTP Global, and Fundamentum Partnership.
The deal reflects continued investor confidence in capital-efficient fintech models with sustainable unit economics.

🔹 Statiq (EV Charging Infrastructure) — $18 Mn

Backed by Tenacity Ventures, Y Combinator, Shell Ventures, and RCD Holdings.
The EV infrastructure thesis remains intact as India accelerates EV adoption and charging network expansion.

🔹 C2i Semiconductors — $15 Mn

Investors: Peak XV Partners, Yali Deeptech, TDK Ventures
Semiconductor design continues to draw capital amid India’s push for chip ecosystem self-reliance.

🔹 Vervesemi — $10 Mn

Backed by Ashish Kacholia, Unicorn India Ventures, Roots Ventures, Caperize Fina, and MAIQ Growth Scheme
Another signal that early-stage semiconductor plays are gaining niche investor backing.

🔹 Peptris (Drug Discovery) — ₹70 Cr (~$7.6 Mn)

Investors: IAN Alpha Fund, Speciale Invest, Tenacity Ventures, BYT Ventures
AI-led drug discovery continues to remain attractive within the deeptech-healthcare intersection.

🔹 HomeRun (Quick Commerce) — ₹60 Cr (~$6.6 Mn)

Backed by Sorin Investments, Titan Capital Winners Fund, Sparrow Capital, Consumer Collective by Atrium, Helios Holdings
Quick commerce funding remains cautious but not dormant, with smaller rounds supporting niche and regional players.

Sectoral Signals

• AI & Deeptech: Dominant (driven by Neysa + semiconductor deals)

• Fintech: Stable, selective capital flow

• EV Infrastructure: Continued steady investor backing

• Quick Commerce: Tactical bets, smaller ticket sizes

• HealthTech/Drug Discovery: Growing AI intersection appeal

What This Week Really Tells Us

1. AI Infrastructure is the new capital magnet.

2. Mega deals can distort weekly trends — ecosystem recovery is still uneven.

3. Early-stage funding remains cautious but active.

4. Institutional and global capital is returning — but selectively.

5. Deeptech and semiconductor momentum is building under policy tailwinds.

The ecosystem is not yet in a broad-based funding revival. Instead, India appears to be entering a “conviction cycle” — where large, defensible, technology-heavy ventures attract disproportionate capital, while traditional consumer and growth-stage startups continue to navigate tighter liquidity conditions.

TICE Funding Index Outlook

With multiple global announcements around AI, semiconductor fabrication, and digital infrastructure emerging from the India AI Impact Summit, the coming weeks may witness:

• Increased late-stage AI investments

• Larger crossover and PE participation

• Strategic capital into deeptech manufacturing

However, unless early-stage deployment accelerates, the ecosystem’s funding health will remain dependent on large outlier deals.