Indian startups raised $662 million in July, a sharp decline from the blockbuster $2 billion recorded in June, when Meta'sinvestmentin CRED accounted for a significant share of the month's funding. July saw only one funding round above $100 million as Emergent raised fresh capital and became the seventh unicorn of 2026. The second largest deal stood at just $40 million, a sign of the limited availability of large ticket funding during the month. Despite the month on month decline, July's funding remained aboveMay's $630 million. Early stage startups accounted for 38% of the total capital raised. IPO activity remained strong, although Zepto postponed its public listing amid valuation discussions with investors. The month also saw four startup shutdowns, while no major layoffs were reported separately in the media, a rare occurrence in recent months. According to data compiled by Entrackr, Indian startups raised approximately $662 million across 85 deals in July. The total included 16 growth and late stage deals worth $410 million and 64 early stage deals worth $252 million. Additionally, five deals were disclosed without their funding amounts during the month. Month on month, startup funding fell 67% to $662.2 million in July from$2 billion in June, the second lowest monthly total in the past 13 months. Year on year, funding rose 11% from $597.6 million in July 2025 to $662.2 million in July 2026, while the number of deals declined from 105 to 85. Growth and late stage funding in July was led by AI startup Emergent, which raised $130 million in a Series C round. Raghu Vamsi Aerospace Group, Veriqus, and BusinessNext followed with $40 million each, while Neo Group secured $36.3 million in a Series C round. Other notable deals included Limelight Diamonds, Elevate Education, Quick Clean, Apna Mart, and Naturis Cosmetics, with investments spread across AI, fintech, deeptech, consumer, edtech, and manufacturing. Early stage funding in July was led by Arboreal Bioinnovations, which raised $24 million in a Series A round.Plazzaand Vorflux followed with $15 million each, while Reo.Dev and BatX Energies secured $11.3 million and $11 million, respectively. Other notable deals included Dovetail Capital, Aham Housing Finance, E3 Electric.AI, CARPL.ai, and Aukera, with investments spread across foodtech, AI, fintech, mobility, healthtech, battery technology, and ecommerce. M&A activity in July featured several notable transactions across ecommerce, proptech, edtech, and venture capital. Snitchacquiredfashion brand Berrylush to expand its presence in women's fashion, while Aurum PropTech announced plans toacquireHousing.com in a $46.2 million deal. PhysicsWallahincreased its stakein Sarrthi IAS to a majority through a $7.5 million transaction, which strengthened its presence in the civil services test preparation segment. WTF also acquired creative agency BTG, which expanded its presence in the brand and creative services space. Bengaluru retained its lead in s
