Investment activity in India's deep technology sector continued in 2026, with new funding platforms and startup support programmes being launched even as the number of deals declined.
According to Tracxn data, Indian deep technology startups raised $1.23 billion across 120 funding rounds in 2026 so far. In 2025, the sector recorded 372 funding rounds and total funding of $1.54 billion.
The figures indicate that while fewer companies are getting bigger cheques, capital inflows have remained resilient.
"We're seeing a shift rather than an acceleration across the board. Capital is becoming more concentrated, and investors are spending more time evaluating whether companies have a genuine technology advantage and a path to commercialisation,” a VC from a domestic firm said.
“The number of transactions may be lower than last year, but that is due to larger funding rounds. Investors are increasingly willing to write larger cheques for businesses that can demonstrate technical depth and early customer adoption, instead of spreading capital across a large number of companies,” he added.
In May, Fundamentum Partnership, co-founded by Infosys chairman Nandan Nilekani and Ashish Kumar, launched Fundamentum Frontier Advisors (F2A), a platform focused on artificial intelligence and deep technology investments. The platform has a total investment capacity of Rs 3,000 crore, comprising a SEBI-approved fund of Rs 2,000 crore and up to Rs 1,000 crore in co-investments. It plans to back companies working in consumer, enterprise and physical AI.
"Technology-led innovation continues to create new opportunities across sectors," Nilekani said when the platform was announced.
Also in May, customer service software company Zendesk said it would commit $100 million over two years to expand its Zendesk for Startups programme. The initiative provides access to the company's AI products, onboarding support and partner benefits, and has been extended to venture capital firms and their portfolio companies.
Recent funding rounds have continued across several areas of deep technology. Pune- and Seattle-based Rivvun AI raised $7.55 million in a round led by Sitara Capital and 3one4 Capital, while precision manufacturing startup Ethereal Machines secured $28.5 million from investors including Avataar Ventures and Peak XV Partners.
Support programmes have also expanded. Karnataka's Elevate Nxt 2026 initiative received applications from 983 startups and shortlisted 256 deeptech companies, while the Indian National Space Promotion and Authorisation Centre (IN-SPACe) selected three startups for the first round of funding under its Technology Adoption Fund.
The recent launches of dedicated investment vehicles and startup support initiatives come as companies and investors continue to increase spending on AI-related infrastructure and technologies. Australia-based data centre operator AirTrunk said this month that it plans to invest $30 billion in India by 2030 to expand capacity supporting cloud computing and artificial intelligence workloads.
