India tech funding hits $10.3 billion despite fewer deals: Where is the money going?

India’s technology sector has managed to raise a total of $10.3 billion in equity funding in the first nine months of 2026, up 7% from $9.7 billion a year earlier. This comes even as investors are becoming more selective and are concentrating the capital in fewer, larger companies

According to Tracxn data, a total of 1,838 rounds of funding came through in the first nine months of 2025, while only 1,134 rounds of funding took place this year. However, 18 mega-rounds of $100 million or more helped push overall funding higher. Nxtra was the biggest winner with a $1 billion private-equity round for data-centre expansion, followed by Neysa’s $600 million Series B and CRED’s $540 million Series H.

Here’s a look at the sectors that are attracting most funding:

Enterprise Applications topped the chart, attracting $3.5 billion, a 49% increase from last year. This shows that investor interest is growing in software businesses serving enterprises, particularly those with established products and revenue models.

FinTech was the second major funding pool, raising $2.2 billion, up 13% year-on-year. Within the sector, digital lending and payments were among the biggest individual segments. Digital lending alone attracted $799 million, while payments received $773 million.

Enterprise Infrastructure, however, seems to be the fastest-growing sector. Funding surged 436% to $1.6 billion, from just $292 million in 9M 2025. The jump was driven by the growing requirement for computing, data centres and other technology infrastructure supporting the AI boom.

AI Infrastructure was the most-funded business segment, attracting $1.2 billion over the nine-month period. The Neysa round was one of the biggest deals in this space, underscoring the growing investor appetite for AI compute infrastructure rather than only consumer-facing AI applications.

The shift is also visible in funding stages. Seed funding fell 37% to $698 million, while early-stage funding rose 27% to $4.2 billion. Late-stage funding remained broadly stable at $5.4 billion. The number of first-time funded companies fell 30% to 338.

In other words, India’s tech funding market in 2026 is not necessarily shrinking—it is becoming more concentrated. Investors are putting larger cheques into companies with proven scale, while infrastructure, enterprise software, fintech and AI-related businesses are commanding a growing share of the capital.