TICE Funding Index: Investor Caution Pulls VC Inflows Back Into $100M Range

After weeks of cautious optimism, the Indian startup ecosystem was once again reminded of the tough fundraising environment it continues to battle. The week of September 20–26 closed with venture capital (VC) inflows slipping back into the $100 million range—a sobering sign that investor confidence remains fragile amid global and domestic uncertainties.

According to data tracked for the week, Indian startups collectively raised $155 million across 29 deals. While the number of deals stayed at a healthy level, the absence of large-ticket funding meant the overall tally fell short of the $245 million raised in the previous week. The dip reinforces a now-familiar pattern: occasional spurts of enthusiasm followed by quick pullbacks, leaving founders and investors alike wary of predicting any sustained momentum.

Why the Funding Slump?

At the heart of this slowdown lies a cocktail of global macroeconomic challenges. Decisions taken by U.S. President Donald Trump, such as a steep hike in H-1B visa fees and fresh tariffs on the pharmaceutical industry, have created ripples that extend far beyond American borders. For India, whose startups thrive on global capital inflows, these shifts are more than policy headlines—they directly impact sentiment, valuations, and deal flows.

The result is an investor class that prefers to wait on the sidelines, holding back from placing big bets. As a consequence, most of the week’s funding activity was limited to early and mid-stage rounds, each in the double-digit million-dollar range, but lacking a blockbuster deal to set the tone. The highest cheque of the week—just $23 million—went to a deep-tech company.

Deals That Defined the Week

Even in a cautious environment, innovation continues to draw capital. Some of the standout deals this week include:

• Chakr Innovation, a deep-tech startup tackling air pollution, secured $23 million from Iron Pillar, SBI Cap Ventures, ONGC, IAN, and Inflexor.

• Curefoods, the cloud-kitchen venture led by Ankit Nagori, raised ₹160 crore (~$18 million) in a pre-IPO placement from 3State Ventures, the investment arm of Flipkart co-founder Binny Bansal.

• Rocket, an AI startup, attracted $15 million from Salesforce Ventures, Accel, and Together Fund.

• Vedantu, the edtech unicorn navigating a post-COVID reset, bagged $11 million from ABC World Asia, Accel, and Omidyar Network.

• Simple Energy, the Bengaluru-based EV startup, secured $10 million from Arokiaswamy Velumani, Balamurugan Arumugam, and the Haran family office.

• Distil, a speciality chemicals startup, raised $7.7 million from Jungle Ventures, CE-Ventures, and angels.

• Gullak, a fintech app focused on savings automation, brought in $7.5 million from Chiratae Ventures, White Venture Capital, Samved Ventures, Y Combinator, GMO Fintech Fund, and Rebel Fund.

• Oolka, another AI venture, raised $7 million from Lightspeed India Partners, Z47, 8i Ventures, and a group of angel investors.

Indian Startup Funding: The Big Picture

Despite the steady trickle of deals, the ecosystem is grappling with the reality that big-ticket investments remain elusive. A funding week capped at $155 million signals the uphill battle for late-stage startups, many of which are holding off on expansion or IPO plans until investor sentiment turns.

For founders, this means recalibrating expectations—valuations are being adjusted, cash burn is under stricter scrutiny, and the ability to demonstrate revenue visibility has become non-negotiable. Investors, meanwhile, are increasingly tilting toward businesses with stronger fundamentals, shorter profitability timelines, and models that can withstand external shocks.

Optimism hasn’t disappeared entirely. Many insiders believe that 2026 could bring a revival as the global economy stabilizes, interest rate cycles ease, and India continues to strengthen its position as a hub for deep-tech, AI, and climate-focused innovation. For now, however, the ecosystem seems destined to ride out the turbulence in the $100 million–$200 million weekly funding range.

The message from this week is clear: Indian startups are resilient, but resilience alone won’t move the needle without more decisive investor confidence. Until then, founders will need to keep their heads down, innovate relentlessly, and prepare to seize opportunities when the tide turns.