July 24, 2026 at 03:04 AM 2 min readai
Indian Deeptech Startups Secure $610 Million in H1 2026 Despite Deal Drop
Deal volumes hold steady at 93 transactions as enterprise artificial intelligence and specialized tech attract institutional capital.
Resilient Capital Inflow into Deeptech:
India's deeptech sector secured $610 million in funding during the first half of 2026, despite a 25% decrease in total capital compared to the corresponding period in the previous year. Investor appetite remains robust across early-stage artificial intelligence, space, and defense ventures.
Steady Deal Activity Amid Market Shifts:
The total number of transactions remained stable at 93 deals, indicating sustained investor confidence in nascent domestic technologies. Meanwhile, institutional programs like UPES Runway are supporting artificial intelligence startups through initiatives such as 'The Pitch 3.0' in New Delhi, offering grants of up to ₹50 lakh.
Strategic Investments in Enterprise AI:
BusinessNext raised $40 million in a Series C round from ServiceNow, valuing the firm at $700 million to enhance autonomous operations. Additionally, radiology marketplace CARPL.ai secured $10 million in Series A funding led by the International Finance Corporation.
Pulse Intelligence
Context & ImpactContext & Background
- India's technology sector experienced varied venture capital trends across traditional software and hardware segments through 2025.
- Deeptech startups require longer incubation periods, prompting targeted interventions from both government and institutional venture funds.
Key Consequences
- Early-stage founders working on artificial intelligence and defense technologies will see better access to seed capital by late 2026.
- Enterprise artificial intelligence providers will expand their domestic engineering headcount to scale private AI solutions.
Market & Economic Impact
Not applicable.
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