Punjab, Oct. 9 -- For the first time, AI was the single largest recipient of startup funding in India in a quarter. Indian AI companies raised 438 million dollars in Q3 2026, up 265 per cent year on year, according to Inc42's quarterly report released on Friday - enough to top the sector table outright.
The numbers
Deal count rose 35 per cent, to 35 from 26 in the same quarter of 2025. The largest round was Emergent's 130 million dollars. For the first nine months of 2026, AI funding stands above 1.1 billion dollars.
The context matters more than the growth rate. Across all sectors, Indian startups raised 2.2 billion dollars across 210 deals in Q3 - up just 5 per cent year on year. AI did not grow because the funding market grew. It grew...