TICE Funding Index: Indian Startups Raise $104 Mn In The First Week Of 2026

The Indian startup ecosystem kicked off 2026 on a measured note. Between December 29 and January 2, funding activity remained lean, with just two startups announcing fundraises. Yet, despite the low deal count, the ticket sizes were significant, taking total capital raised for the week to $104.2 Mn.

This marked a sharp 112% jump from the $49.2 Mn raised across seven deals in the previous week—underscoring how a handful of large rounds can still move the needle even during seasonal slowdowns.

A Quiet Week, Anchored By Two Large Deals

As is typical during the year-end holiday period, investors largely stayed on the sidelines. The only funding announcements came on January 2, when agritech startup Arya.ag and fintech SaaS player Knight Fintech revealed their latest rounds.

Funding Deals Of The Week (Dec 29 – Jan 2)

• Arya.ag

  • Sector: Agritech (Market Linkage)

  • Round: Series D

  • Amount Raised: $80.6 Mn

  • Investor:GEF Capital Partners

  • The round included a mix of primary and secondary transactions, reflecting strong institutional confidence in agritech platforms tied to India’s real economy.

• Knight Fintech

  • Sector: Fintech (B2B SaaS)

  • Round: Series A

  • Amount Raised: $23.6 Mn

  • Lead Investor:Accel

  • Other Investors:3one4 Capital, IIFL, Rocket Capital, Prime Ventures, Commerce VC, Trifecta Capital

  • The round highlighted continued investor interest in fintech infrastructure and enterprise-focused SaaS models.

Together, these two rounds accounted for the entire $104.2 Mn raised during the week.

Seasonal Slowdown, Familiar Pattern

While the number of deals may look subdued, this slowdown is not unusual. Funding activity typically tapers off in the final week of the calendar year. For perspective, Indian startups raised just $25.9 Mn across six deals in the last week of December 2024, reflecting a similar pause in capital deployment.

2025 In Review: Funding Context Matters

These early 2026 numbers add to what was a mixed but resilient 2025 for Indian startups. Over the course of the year, startups raised more than $11 Bn across 936+ deals, slightly lower than the $12 Bn across 993 deals in 2024—an 8% decline year-on-year.

However, the funding dip needs to be seen alongside a strong IPO cycle during the year, which reshaped liquidity dynamics. For comparison, total startup funding had slipped to $10 Bn in 2023, at the peak of the funding winter.

Looking ahead, 2026 is expected to see selective rebounds, with capital flowing toward AI-led platforms, fintech infrastructure, real-economy startups, and category-defining B2B and consumer companies. IPOs and secondary transactions are likely to play a larger role in shaping exits and liquidity.

Startup IPO Updates This Week

• Captain Fresh withdrew its confidential DRHP, citing unexpected regulatory delays related to a European acquisition.

• OYO parent PRISM pre-filed its DRHP to raise INR 6,650 Cr via a fresh issue, with an OFS component also expected.

• Quick commerce major Zepto pre-filed draft papers for an IPO sized at over $1.3 Bn with SEBI.

M&A Activity This Week

• Delhi NCR-based meat delivery startup Zappfresh approved the acquisition of a 51% stake in Avyom Foodtech Private Limited, infusing INR 7.5 Cr via private placement. The move enables entry into ready-to-eat (RTE) and ready-to-cook (RTC) segments, along with overseas expansion.

• Ecommerce giant Flipkart announced the sale of its entire stake in Flying Machine’s parent Arvind Youth Brands Pvt Ltd to Arvind Fashion in a INR 135 Cr transaction.

Other Notable Developments

• Varun Alagh, cofounder and CEO of Honasa Consumer, increased his stake by purchasing 18.52 lakh shares worth INR 50 Cr from early investor Fireside Ventures via a secondary deal.

• SBI Mutual Fund offloaded 45.09 lakh shares worth INR 108 Cr in listed gaming company Nazara Technologies through block deals.

The first funding week of 2026 may have been quiet on volume, but it delivered quality over quantity. As the year unfolds, investor focus is likely to sharpen further—rewarding startups with scale, strong unit economics, and clear paths to profitability.