TICE Funding Index: Modest Uptick, But Big Cheques Still Missing

Indian startup funding showed a mild recovery this week, but the ecosystem continues to wait for breakout mega-deals.

Between February 9 and 14, Indian startups collectively raised $230–236 million across 35+ deals, reflecting a near 10% rise over the previous week’s ~$215 million. While the headline number suggests stability, the absence of any $100 million-plus round in 2026 so far signals that large growth capital remains on pause.

The ecosystem is active — but cautious.

TICE Funding Index

Growth-Stage Deals Lead Capital Inflow

Growth-stage startups accounted for the bulk of capital this week, raising over $150 million across eight deals.

Key Highlights:

• IDfy secured $53 million in a Series F round, led by Neo Asset Management with participation from existing investors. The identity verification startup continues to ride the global compliance and fraud-prevention wave.

• Supertails, the pet care platform, raised $30 million from Venturi Partners and others, underscoring investor confidence in India’s premium pet economy.

• Olyv (formerly SmartCoin) closed a Series C round worth Rs 207 crore, reflecting sustained investor interest in alternative lending.

• Pandorum Technologies, the biotech startup focused on regenerative medicine, raised $18 million, signaling continued backing for deep science ventures.

Despite these rounds, most larger deals remained in the $50–80 million range, with no outsized capital infusion breaking the pattern of restrained growth funding.

Early-Stage Momentum Stays Strong

If there is one consistent theme in 2026 so far, it is early-stage resilience.

Startups at seed to Series A stages raised $80+ million across nearly 28 deals, making early-stage the most active category by volume.

Notable rounds include:

• Showroom B2B, a fashion-tech marketplace, raised $17 million.

• Omnichannel grocery startup Elixiir Foods secured $9 million.

• D2C ethnic wear brand Amanya (DSLR) raised $9 million.

• Healthcare fintech Care.fi, EV-tech player Six Sense Mobility, deeptech startup ThirdAI, and cleantech venture PadCare Labs also featured among early-stage fundraises.

Seed rounds dominated the week, reinforcing investor appetite for smaller, conviction-based bets rather than large late-stage exposure.

City & Sector Trends: Bengaluru Tops Funding, Delhi Leads Deal Count

• Delhi-NCR recorded the highest deal volume (15 deals).

• Bengaluru led in total capital raised (~$93 million).

• Mumbai, Jaipur, Hyderabad, Pune, and Kerala-based startups also saw activity.

Sector-wise:

• E-commerce led in deal count.

• Manufacturing and Healthtech followed closely.

• Fintech, pet care, EV, battery tech, and deeptech startups also attracted investor attention.

However, unlike the US where AI dominates funding headlines, India’s funding landscape remains diversified — but without a defining breakout theme.

M&A and Fund Activity Signal Strategic Consolidation

Beyond funding, strategic activity remained robust:

• Bertelsmann Investments acquired an 80% stake in logistics platform LetsTransport.

• Rainmatter picked up a majority stake in digital pension app PensionBox.

• ixigo approved acquisition of Spain-based train ticketing platform Trenes.

• USV moved into the D2C nutraceutical space with a majority stake in Wellbeing Nutrition.

Meanwhile, W Health Ventures and Java Capital announced new funds focused on healthcare and deeptech respectively — suggesting capital is being positioned for future cycles.

Financial Signals: Growth Amid Profit Pressure

While funding remains moderate, several startups reported strong revenue growth this week — including FirstCry, Lenskart, Shadowfax, GIVA, and Wakefit — even as profitability pressures persist across mobility and consumer tech.

UPI data showed continued dominance by PhonePe and Google Pay, reflecting sustained fintech adoption even as funding into the segment moderates.

The numbers tell a story of controlled optimism.

Weekly funding has stabilised in the $180–230 million range over the past two months, but:

• No $100M+ deals in 2026 yet

• Growth capital remains selective

• Early-stage deals dominate by volume

• Market volatility continues to weigh on investor confidence

Unless macroeconomic stability improves or a breakout theme — perhaps in AI, deeptech, or climate — captures investor imagination, the funding landscape may continue in this calibrated mode.

For now, Indian startups are raising — just not roaring.