India, July 3 -- AI emerged as the defining theme of the Indian startup ecosystem in H1 2026. As conversations around the nascent technology intensified, investor interest also picked up sharply.

As per Inc42's 'Indian Tech Startup Funding Report, H1 2026', Indian AI startups raised $676 Mn during the first six months of 2026. The number of funding deals also touched a fresh six-month high of 57.

The capital infusion in the AI ecosystem zoomed over 4X from $162 Mn raised across a mere 30 deals in H1 2025. Sequentially, AI funding zoomed over 35% from the over $500 Mn raised by startups.

The funding surge becomes even more apparent when viewed in context. Indian AI startups had raised only about $1.8 Bn cumulatively until 2025. In just ...