TICE Funding Index: From Fintech to EVs, Startup Funding Finds Its Rhythm in January

January is typically a quiet month for India’s startup ecosystem. Funding decisions slow down, investors take time to settle into the new year, and deal activity usually remains muted. But this January, something feels different.

As the third week of the month wraps up, venture capital funding into Indian startups is showing clear signs of momentum. Not driven by a single mega-round or a one-off transaction, the current uptick is being powered by a steady rise in deal volumes across sectors, indicating that investor confidence is returning in a measured but meaningful way.

During the week of January 17–23, Indian startups raised $373 million across 40 deals, a significant jump from $229 million across 25 deals in the previous week. The data suggests that January 2026 is defying its usual reputation as a slow starter and instead shaping up as an active month for capital deployment.

TICE Funding Index

Deal Volume Takes Centre Stage

What stands out most this week is the sharp increase in the number of deals. While total funding grew, it was the rise in transactions—from 25 to 40—that truly defined the week.

In venture capital, deal volume often reflects sentiment before deal size does. A higher number of cheques indicates that investors are back in the market, meeting founders, and committing capital rather than waiting on the sidelines. This week’s numbers reinforce that trend clearly.

Funding activity was spread across fintech, electric mobility, traveltech, manufacturing, climate tech, and AI, showing that investor interest is not limited to one or two favoured segments. Instead, capital is being allocated across a wide range of business models and industries.

Fintech, EVs and Traveltech Lead the Way

Some of the largest transactions of the week came from sectors that continue to attract strong investor attention.

Electric vehicle startup GreenCell Mobility raised $89 million from International Finance Corporation (IFC), British International Investment (BII), and Tata Capital. The deal underlines continued interest in sustainable mobility solutions, particularly those operating at scale in India’s growing EV ecosystem.

Fintech remained another major draw. Payments infrastructure player Juspay raised $50 million from WestBridge Capital, reaffirming confidence in companies that sit at the core of India’s digital financial stack. Meanwhile, Namdev Finvest secured $37 million from a consortium including FMO, Impact Investment Exchange (IIX), Franklin Templeton Alternative Investments Fund India, and Symbiotics.

Traveltech also made a strong showing. Escape Plan raised $25 million from Jungle Ventures, Fireside Ventures, and IndiGo Ventures, while WanderOn secured ₹54 crore ($5.8 million) from DSG Consumer Partners and CAAF, pointing to continued revival and investor interest in travel-led businesses.

Capital Flows Across Stages

Another notable feature of this week’s funding activity is the balanced distribution across stages. Capital was deployed across pre-Series A, Series B, and growth-stage startups, indicating that investors are backing both early-stage innovation and companies with established traction.

Manufacturing startup Whizzo raised $15 million from Fundamentum, LB Investment, Lightspeed, and BEENEXT, while logistics automation company Unbox Robotics secured $28 million from a wide investor group including ICICI Venture, F-Prime, and 3one4 Capital.

Climate-focused businesses also attracted attention. Aerem Solutions, a climate tech startup, raised $15 million from investors including SMBC Asia Rising Fund, British International Investment, Blume Ventures, Avaana Capital, and SE Ventures. Cooling solutions startup Optimist raised $12 million from Accel and Arkam Ventures.

Debt Funding Sends a Positive Signal

Beyond equity rounds, debt funding saw strong growth during the month, offering a positive signal for the ecosystem. Debt investors typically back companies with stable revenues and healthy cash flows, making this trend an indicator of improving business fundamentals among Indian startups.

The rise in debt funding suggests that more companies are reaching a stage where growth is being funded not just by equity dilution, but also by structured capital.

AI Investment Offers a Glimpse of What’s Ahead

Among the week’s notable developments was funding into Emergent, an India-origin artificial intelligence startup now headquartered in San Francisco. Backed by Khosla Ventures and SoftBank Vision Fund 2, the investment stands out in a market where pure-play AI startups remain relatively limited.

The deal highlights growing global interest in Indian-founded AI companies and offers optimism that more such startups could emerge in the coming years.

Optimism, With a Note of Caution

While funding momentum has clearly picked up, caution still lingers in the background. Global stock markets have been under pressure, and ongoing trade tensions between major economies continue to weigh on broader investor sentiment.

These macroeconomic challenges mean that while investors are deploying capital, they are doing so selectively—focusing on startups with clear revenue visibility, strong unit economics, and scalable business models.

What January Is Telling Us

The third week of January sends a clear message: startup funding in India is finding its rhythm again. Rather than chasing oversized rounds, investors are spreading capital across sectors, stages, and deal sizes.

For founders, this environment rewards clarity, discipline, and execution. For investors, deal activity—not just headline numbers—appears to be the key indicator of confidence.

If this trend continues, January 2026 may well mark the start of a steadier, more grounded funding cycle for India’s startup ecosystem—one cheque at a time.