Indian startup funding was sluggish in the first week of 2026, with 19 startups raising a total of $68.4 million between January 5 and 9, down 34% from the previous week. Healthtech topped the funding charts, helped by Even Healthcare’s $20 million round, while e-commerce saw the most deals, with five D2C startups raising $9.7 million. The bulk of the money went to B2C startups, which accounted for 70% of the total funding, with seed-stage startups raising $16.8 million across six deals.

In terms of IPOs, Amagi is set to become the first new-age tech company to go public in 2026 by filing its RHP, although it has scaled back the size and OFS component of its new issue. Meanwhile, merger talks between upGrad and Unacademy have collapsed after the two sides could not agree on the valuation.

In other major developments, fintech major Razorpay has started preparations for a major IPO with a fresh issue of ₹4,500 crore, while Tamil Nadu Chief Minister MK Stalin launched a ₹100 crore startup policy aimed at supporting deeptech startups in the state.