Artificial Intelligence (AI) emerged as a major force in India’s tech funding landscape in the first nine months of 2026 as over $10.3B were raised, even the number of funding rounds dropped a sharp 38% compared to previous year, according to a latest Tracxn report.
The India Tech 9M 2026 Report prepared by Tracxn shows a 7% rise in funding to $10.3B alongside a 38% drop in deal volume, “highlighting a shift toward larger, higher conviction bets in AI and enterprise infrastructure.”
According to a latest Tracxn report shared with AI FrontPage, AI Infrastructure attracted $1.2 billion, making it the most-funded business feed during the period. The report said major funding rounds were increasingly concentrated in AI infrastructure, alongside digital lending and payments.
The biggest funding in first nine months of 2026 belonged to Nxtra Data Limited (Nxtra), a data center subsidiary of Indian telecom giant Bharti Airtel, that received a massive $1 billion in funding in March 2026, for AI infrastructure growth.
AI-focused companies also featured among the period’s larger funding rounds. Sarvam raised $234 million in a Series B round, while AI infrastructure company Neysa raised $600 million in Series B funding. Tracxn identified AI infrastructure as a significant contributor to the 18 funding rounds of $100 million or more recorded during 9M 2026.
Beyond AI, India’s broader technology ecosystem raised $10.3 billion, up 7% from $9.7 billion in 9M 2025, even as funding rounds fell 38% to 1,134. Enterprise Applications received $3.5 billion, while Enterprise Infrastructure surged 436% to $1.6 billion. FinTech funding rose 13% to $2.2 billion.
The AI infrastructure India funding trend also points to a growing concentration of AI activity in Bengaluru. The city accounted for 43% of India’s total tech funding, or $4.4 billion, during 9M 2026, with AI company Sarvam among its largest-funded companies after raising $234 million in Series B funding.
Tracxn’s data shows that while overall deal activity weakened, capital continued to move toward infrastructure and companies with larger funding requirements, placing AI infrastructure alongside enterprise technology as a key part of India’s funding landscape.
