Indian startups raised $4.1 billion in venture capital and private equity funding in the first quarter of 2026, the highest Q1 figure since the peak of 2022 and a 67% improvement over the same period last year.
The recovery is being led by what investors are calling India’s deeptech moment: AI, space technology, climate tech, and advanced manufacturing collectively attracted $1.9 billion of the quarter’s total.
Breakout Deals
The largest deal of the quarter was a $320 million Series C for Agnikul Cosmos, the Chennai-based rocket manufacturer. A Bengaluru-based enterprise AI platform raised $180 million. Three climate tech startups collectively raised over $400 million in what analysts called an unprecedented quarter for the sector.