Delhi NCR Startups Raise USD 1.7 Bn in Q1 2026: Report

The startup funding environment in India’s Delhi NCR region showed a mixed yet notable shift in the first quarter (January – March) of 2026, reflecting both renewed investor interest and continued caution in parts of the market. While overall funding rebounded sharply from the previous quarter, it still remained below the levels recorded a year earlier. This indicates that investors are becoming more selective, prioritising sectors with long-term growth potential such as infrastructure, energy and enterprise technologies, even as global and domestic uncertainties persist.

According to Tracxn in its report titled Delhi NCR Tech Quarterly Funding Report - Q1 2026, startups in the region raised a total of USD 1.7 billion during the quarter. This marks a sharp 220% increase compared to USD 523 million raised in Q4 2025, though it represents an 11% decline from USD 1.9 billion recorded in Q1 2025. The data highlights a strong quarter-on-quarter recovery, suggesting a revival in investor confidence after a relatively slow end to the previous year.

Funding activity across different stages showed varied trends. Seed-stage startups raised USD 147 million in Q1 2026, reflecting a 137% increase from USD 62 million in Q4 2025 and a 49% rise compared to USD 98.6 million in Q1 2025. Early-stage funding reached USD 362 million, up 63% from USD 222 million in the previous quarter and 20% higher than USD 302 million a year earlier. Late-stage funding recorded the most significant quarterly jump, rising 387% to USD 1.2 billion from USD 239 million in Q4 2025, although it declined 21% compared to USD 1.5 billion in Q1 2025.

Large funding deals also returned during the quarter. There were three funding rounds exceeding USD 100 million, compared to none in Q4 2025 and four such deals in Q1 2025. Among the key transactions, Nxtra raised USD 710 million in a private equity round, Inox Clean Energy secured USD 344 million in a Series D round and Wingify raised USD 150 million in a Series A round. These deals were largely concentrated in enterprise infrastructure, environmental technology and enterprise applications.

Sector-wise, enterprise infrastructure emerged as the top-performing segment, attracting USD 869.1 million in funding, a significant jump compared to negligible funding in earlier periods. Environment technology recorded USD 434 million in Q1 2026, marking a 500% increase from USD 72.4 million in Q4 2025, though it was down 61% from USD 1.1 billion in Q1 2025. Enterprise applications saw funding of USD 243 million, rising 94% from USD 125 million in the previous quarter but declining 16% compared to USD 289 million a year earlier.

Despite the rebound in private funding, public market activity slowed considerably. Only one company, Novus Loyalty, went public during the quarter, compared to eight IPOs in Q4 2025 and six in Q1 2025. This decline suggests that companies remain cautious about listing in the current market environment.

Mergers and acquisitions, however, showed steady momentum. Delhi NCR recorded nine acquisitions in Q1 2026, unchanged from the same period last year but significantly higher than three deals in Q4 2025. The largest transaction was the acquisition of Brahma by Polymarket for USD 1.2 billion, followed by Cars24 acquiring CarInfo for USD 44.4 million. These deals reflect continued consolidation within the ecosystem.

No new unicorns were created during the quarter, continuing the trend seen in Q4 2025 and marking a drop from one unicorn in Q1 2025. This indicates that while funding volumes are improving, the pace of high-valuation growth remains subdued.

Geographically, Gurugram-based startups accounted for 52% of total funding in the region, followed by Noida with 27%.

Investor participation remained strong, with Inflection Point Ventures, India Accelerator and Venture Catalysts leading seed-stage investments. At the early stage, Peak XV Partners, Saama and Bain Capital Ventures were prominent, while late-stage funding was led by investors such as Orbimed, Blume Ventures and Swedfund.