Execution Gets the Cheque: Inside India's Changing Startup Funding Landscape
India's startup funding story in the first half of 2026 is one of contrasts. Startups collectively raised $7.2 billion, 12% more than a year ago, according to Tracxn's India Tech H1 2026 report. Yet the number of funding rounds dropped 43%, first-time funded startups declined 31%, and institutional investors became increasingly selective about where they deployed capital.
The shift marks more than a temporary market correction. It signals a venture ecosystem where capital is concentrating around fewer companies, larger funding rounds, and sectors such as AI infrastructure, data centres, and clean energy, while early-stage founders face a more challenging fundraising environment.
To understand what these trends mean for India's startup ecosystem, CIOL spoke with Ashutosh Srivastava, VP, Investments at SanchiConnect. He believes investors haven't lost their appetite for innovation. Instead, they have fundamentally changed what they expect before writing a cheque.
Srivastava believes India's venture capital market is entering...
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