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VC funding in September dips 8.3% year on year

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VC funding in September dips 8.3% year on year

Venture capital funding into Indian startups saw a 8.3% year-on-year dip in September, despite four $100 million deals.

However, VC funding rose 15.5% compared to August, revealing the divergent trends in capital inflow into the startup ecosystem.

The total VC funding for September this year was $1.139 billion, compared to $1.242 billion in the same month last year, according to YourStory Research. The VC funding in August 2026 was $986 million.

There were some positives in September. The month marked the third time that VC funding crossed $1 billion this year. The other two times were in February ($1.40 billion) and July ($2 billion).

Four deals crossed the $100 million mark in September: Pixxel ($100 million), DMI ($152 million), Simple Energy ($182 million), and SiMa ai ($150 million). The other notable deal was Ultrahuman ($70 million).

These five deals accounted for $654 million. This shows that it is the large deals that provide a boost to the funding momentum.

Between July and September of 2026, the total VC funding raised was $2.92 billion, 2% higher than the $2.86 billion raised in the similar period last year.

Surprisingly, the early-stage category showed the highest traction at $557 million, followed by growth stage at $331 million. Generally, it is the late-stage startups that raise the largest quantum of funding, but in September, the category raised just $85 million.

The fintech segment raised the highest amount of funding in September at $251 million followed by electric vehicles at $222 million.

Among the cities, Bengaluru was at the number one spot at $666 million followed by Delhi-NCR at $211 million and Mumbai at $149 million.


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