Indian AI Startup Funding Surges 265% YoY In Q3, Will Momentum Continue?

AI emerged as the defining theme in the Indian startup ecosystem in the July-September quarter, with startups in the segment raising their highest-ever-recorded quarterly funding. According to Inc42’s Indian Tech Startup Funding Report Q3 2026 , AI startup funding surged 265% year-on-year to $438 Mn. The number of deals rose 35% to 35 from 26 in Q3 2025.