Indian startups raised $2.2 billion across 210 deals in the July-September quarter, up 5 per cent from a year earlier, according to Inc42’s Q3 2026 funding report.

The headline growth hides a more selective market. Deal count fell 13 per cent, from 240 to 210, and the quarter stayed well below the eight-quarter average of about $2.7 billion.

Growth-stage startups were the clear winners. Funding at that stage jumped 46 per cent to $1.1 billion across 90 deals, overtaking late-stage funding, which stayed flat at $994 million.

Four mega deals of $100 million or more closed during the quarter, against just one a year ago. Emergent and Astrotalk entered the unicorn club.

By sector, AI led with $438 million, up 265 per cent year on year. Cleantech drew $433 million, while deep tech funding surged 176 per cent to $290 million.

Bengaluru dominated with over $1.4 billion across 80 deals. The pool of active investors shrank 24 per cent to 511, with 3one4 Capital the most active equity investor at 19 deals.