India, April 4 -- After a relatively stable 2025, expectations were that the Indian startup ecosystem would carry forward the momentum into 2026. However, the trend so far has remained uneven.;

In Q1 2026, the ecosystem entered a recalibration phase, with total funding falling 26% YoY to $2.3 Bn across 271 deals, down from $3.1 Bn in the same period last year, as per Inc42's "Indian Tech Startup Funding Report Q1 2026". Even as overall funding fell, deal activity held up, supported by a higher number of smaller deals materialising. 

Notably, the quarter did not witness any $100 Mn-plus funding rounds materialise. This is the first such quarter since 2022. 

Meanwhile, the median ticket size rose to $3.3 Mn, even as overall inv...