TICE Funding Index: Why January Ended on a Softer Note for Indian Startups

As January drew to a close, India’s startup funding story hit a speed bump.

After showing signs of a cautious rebound through much of the month, venture capital inflows slowed sharply in the final week—underscoring just how fragile the recovery in private funding remains. The drop wasn’t triggered by a single shock or sector-specific pullback. Instead, it reflected something more structural: fewer deals and the absence of large, headline-grabbing cheques.

For founders, investors, and ecosystem watchers alike, the last week of January offered a reality check.

TICE Funding Index: A sharp week-on-week drop

Between January 24 and 30, Indian startups raised $152 million across 22 deals. That figure marks a steep decline from the previous week, when funding touched $373 million spread across 40 transactions.

What makes this slowdown noteworthy is the context. Venture funding had been climbing steadily for nearly three consecutive weeks, sparking optimism that deal activity was finally stabilising after a prolonged dry spell. The sudden dip, therefore, felt less like a routine fluctuation—and more like a reminder that the funding winter hasn’t fully thawed.

Smaller cheques, fewer bets

Deal activity during the week spanned a wide range of stages—from pre-Series A rounds to Series D investments. Yet, most of these transactions were modest in size, and the number of deals at each stage was noticeably thinner than usual.

In past high-funding weeks, momentum was often driven by one or two large late-stage rounds that lifted overall numbers. This time, those anchor deals were missing. As a result, even though capital was deployed across stages, the total quantum remained subdued.

No dominant sector, no clear theme

Another defining feature of the week was the diversity—rather than dominance—of sectors attracting capital.

Startups in fintech, spacetech, healthcare, AI, and semiconductors all raised funds, but none emerged as a clear frontrunner. While this sectoral spread points to broad-based interest in innovation, it also highlights a lack of conviction around any single theme driving aggressive investment.

In today’s cautious VC environment, momentum is increasingly shaped not just by how many startups raise funds—but by whether large, high-confidence bets are being placed. Last week, those bets were few and far between.

The bigger picture: funding remains uneven

Zooming out, the week’s numbers fit into a larger, more sobering trend.

Venture capital inflows into Indian startups have been uneven for months, oscillating between brief upticks and sudden slowdowns. Full-year data reflects this volatility: VC funding in 2025 declined by around 11% compared to 2024, reinforcing the idea that the ecosystem is still grappling with tighter capital, longer diligence cycles, and more conservative investor behaviour.

While there is growing belief that conditions will improve, optimism remains guarded. Investors are backing businesses with clearer paths to profitability, stronger governance, and defensible technology—but they’re doing so selectively.

Key deals that stood out

Despite the overall slowdown, a handful of transactions offered glimpses of where investor confidence continues to flow:

• The Guild, a spacetech startup, raised $20.5 million in a multi-investor round backed by TDK Ventures, BIG Capital, Accel, Prosus, Yournest, Campus Fund, BlueHill, and Riceberg—making it the largest deal of the week.

• Precision oncology company 4baseCare secured ₹90 crore (approximately $9.8 million) from investors including Ashish Kacholia, Lashit Sanghvi, and Yali Capital, reflecting sustained interest in specialised healthcare solutions.

• AI-powered contract management platform SpotDraft raised $8 million from Qualcomm Ventures, signalling continued investor appetite for enterprise AI use cases.

• Semiconductor-focused AI startup Agrani Labs also raised $8 million, led by Peak XV Partners, highlighting long-term bets on deep-tech infrastructure.

• Healthtech startup Nivaan Care closed a $7 million round from Sorin Investments, W Health Ventures, Endiya Partners, and Rebright Partners, underscoring steady interest in mental and chronic care platforms.

What this week really tells us

The final week of January didn’t signal a collapse—but it did reinforce a crucial point: India’s startup funding recovery is likely to be uneven, selective, and slow-moving.

Capital is still available, but it’s flowing carefully. Volume matters, but conviction matters more. Until large, late-stage deals return consistently, weekly funding numbers will continue to swing.

For now, the ecosystem remains in a phase best described as cautious optimism—hopeful, but grounded in realism.