Early-stage AI startups in India are raising money faster than ever, with term sheets arriving in as little as two weeks.

Funding in India's AI sector rose from 340 million dollars in 2020 to 1.1 billion dollars in 2025, according to Tracxn. So far in 2026, startups have already raised 1.4 billion dollars.

For the strongest teams, rounds that once took three to four months now close in three to five weeks. "We have seen term sheets land within 10 days of the first conversation," said Kushal Bhagia of All In Capital.

Investors are moving fast because AI products can become outdated quickly. Rapid advances by global AI companies can wipe out a startup's edge, so backers want to lock in deals early.

The rush is not limited to AI. This week alone, Indian startups raised over 203 million dollars, led by Ultraviolette's 85 million dollar round and AI firm Ema's 77 million dollar Series B.

Experts say the speed favours strong teams with real users and revenue. Weaker startups still take longer to raise.