TICE Funding Index: Indian Startups Raise $130 Mn As Funding Momentum Returns

After weeks of cautious dealmaking, India’s startup funding landscape showed clear signs of revival—almost as if the ecosystem collectively exhaled—soon after the Union Government unveiled Budget 2026. In the days that followed, investors returned to the table with renewed intent, founders announced fresh capital infusions, and deal flow picked up pace across sectors.

During the week of February 2 to February 6, Indian startups raised a cumulative $130.5 Mn, marking a 36% jump over the $95.6 Mn raised in the previous week. In all, 19 startups closed funding rounds, a slight but meaningful uptick from the 18 deals seen earlier. The numbers may not scream exuberance yet—but they do signal momentum, and more importantly, confidence.

TICE Funding Index

The pickup comes at a time when founders and investors alike are closely reading policy cues and macro signals. With Budget 2026 laying out its priorities, capital appears to be flowing back into businesses that combine scale, technology, and clear paths to revenue.

From late-stage ecommerce brands to early-stage AI and deeptech startups, the week saw a broad-based spread of capital—suggesting that investors are selectively bullish, rather than broadly cautious.

Ecommerce steals the spotlight

If one sector clearly dominated the funding charts this week, it was ecommerce.

Nine ecommerce startups together raised $65.9 Mn across seven deals, making it the most funded sector both by deal count and total value. From D2C food and wellness brands to vertical marketplaces, investors doubled down on consumer-facing businesses with strong brand recall and repeat usage.

Leading the pack was The Whole Truth, which raised $51 Mn in a Series D round, backed by a marquee investor lineup including Sauce.vc, Sofina, Peak XV Partners, Rainmatter Health, AYRA Ventures and Z47. The round once again underlined investor appetite for differentiated D2C brands that have cracked customer trust and distribution.

Other notable ecommerce deals included:

• Material Depot, which secured $10 Mn in a Series A round led by Accel and Stellaris Venture Partners, with participation from a host of well-known startup founders and angels.

• Good Monk, which raised $3.6 Mn in a Pre-Series A round from RPSG Capital Ventures and others.

• Smaller but telling cheques into emerging D2C brands like 1.5 Degree, Invogue, and CHINI KUM, highlighting continued early-stage experimentation in the space.

AI emerges as the second-biggest draw

Close on the heels of ecommerce was AI, which continues to cement its position as one of the most compelling narratives in Indian tech.

AI startups raised $21 Mn across four deals, with investors showing particular interest in application-layer AI companies targeting global B2B customers.

Among the key deals:

• Loop AI raised $14 Mn in a Series A round led by Nyca Partners, with participation from Gokul Rajaram, Base10, Afore Capital and others.

• Fibr AI secured $5.7 Mn at the seed stage from Accel and WillowTree Ventures.

• Early-stage bets on companies like Vibrium and Mindcase further reflected growing conviction in AI-first enterprise products.

Investors stay selective, seed funding cools

While overall funding volumes improved, seed-stage activity continued to soften. Only three seed-stage startups raised capital this week, together securing $7.8 Mn—a 40% drop from the $12.9 Mn raised at this stage last week.

The trend suggests that while capital is available, investors are increasingly selective at the earliest stages, often backing founders with strong prior credentials or clear early traction.

On the investor front, Peak XV Partners and Accel emerged as the most active players of the week, backing two startups each—once again reinforcing their central role in shaping India’s venture ecosystem.

Fund closures signal long-term confidence

Beyond startup-level funding, the week also brought important updates from the venture capital side.

• US-based Golden Sparrow Ventures announced the first close of its $20 Mn Fund II, which will focus on backing around 22 Indian startups at the pre-seed and seed stages, with an average cheque size of about $650,000.

• Unicorn India Ventures marked the final close of its third fund at ₹1,200 Cr, exceeding its original target after exercising a green shoe option.

• In a major push for science-led innovation, Unicorn India Ventures partnered with IIT Madras to launch a ₹600 Cr deeptech-focused fund, aimed at commercialising research-driven technologies.

M&A activity adds another layer of action

The dealmaking momentum extended beyond funding rounds into mergers and acquisitions.

• Delhi-NCR-based gaming startup Zupee acquired Mumbai-based microdrama platform Vertical TV for ₹40 Cr, strengthening its short-video offering under Zupee Studio.

• FMCG major Marico acquired a 60% stake in Cosmix Wellness for ₹225.6 Cr, marking a strong bet on the fast-growing plant-based nutrition space.

• HORIBA India Private Limited acquired 100% of Pristine Deeptech, expanding its footprint in lab-grown diamond applications for semiconductor and quantum research.

IPO pipeline gathers steam

Public markets also remained in focus as multiple startups moved closer to listing.

• Aye Finance filed its red herring prospectus for a ₹1,010 Cr IPO, trimming both its fresh issue and OFS components. The issue is set to open on February 9.

• AI and decision-intelligence firm Fractal Analytics fixed its IPO price band at ₹857–900 per share, with the issue also opening on February 9.

• Market regulator SEBI cleared the IPOs of InCred Holdings and deeptech startup SEDMAC, adding to the growing pipeline.

Other moves worth tracking

Rounding off the week:

• Spacetech startup Dhruva Space is set to raise $4.2 Mn in its ongoing Pre-Series B round, led by IAN VC.

• Peak XV Partners saw senior leadership churn, with three managing directors exiting the firm.

• Listed insurtech player PB Fintech cancelled its planned QIP after the announcement triggered a sell-off in its shares.

Taken together, the week’s developments point to a startup ecosystem that is cautiously regaining its rhythm. While challenges remain—especially at the seed stage—the post-Budget pickup suggests that investors are once again willing to write cheques for businesses with strong fundamentals, scalable models, and long-term vision.

For India’s startups, this may not yet be a funding boom—but it is a clear signal that capital is flowing again, deal by deal, sector by sector.