October 2026 saw a sharp decline in startup funding compared to the same month last year. Total funding fell 60.8% to $677.8 million from $1.73 billion in October 2025. On a month-on-month basis, funding declined 47.5% from $1.29 billion in September, finds Entrackr
Chennai: The investments into Indian startups plummeted 47.5% month-on-month and 60% year-on-year to $678 million in October in the absence of large funding rounds of $100 million and above. If the next two months also record low investments, 2026 could end with the lowest annual funding in seven years.
October 2026 saw a sharp decline in startup funding compared to the same month last year. Total funding fell 60.8% to $677.8 million from $1.73 billion in October 2025. On a month-on-month basis, funding declined 47.5% from $1.29 billion in September, finds Entrackr.
February was the strongest month for funding in 2026, with startups raising around $2 billion, followed by June, which also recorded around $2 billion. Apart from February, June and September all the other months recorded investments less than $1 billion. May and July saw funding less than that in October.
October’s decline came amid a lack of larger deals, with no startup raising $100 million or more during the month. Only Tessolve and Even Healthcare crossed the $50 million mark in funding.
October’s funding slowdown reflects a more selective investment environment, with investors prioritising stronger business fundamentals and clearer paths to profitability, finds Entrackr. Indian startups have raised nearly $11 billion so far in 2026.
If funding averages $1 billion in each of the remaining two months, the annual total could cross the $11.3 billion recorded in both 2023 and 2020. Otherwise, 2026 could end with the lowest annual funding in seven years. The coming months will determine whether the slowdown is temporary or signals a prolonged period of cautious investment. Elevated global interest rates generally go against funding of large private equity firms.
Bengaluru led startup funding in October with $420 million across 52 deals, accounting for 61.97% of the total capital raised. E-commerce startups led sector-wise funding with $182.69 million across 27 deals, followed by AI startups with $131.12 million across 22 deals.
