Q3 Funding Crawls Up, Inc42’s CTO Summit 2026 & More

In Q3 2026, startup funding saw a mere 5% increase year-over-year, totaling $2.2 billion. However, the number of deals fell 13% to 210. India emerged as a hotbed for unicorns, with two new ones created. AI and cleantech sectors led the funding, with AI attracting $438 million, up 265% from the previous year. Cleantech followed with $433 million in funding.

Traditional sectors like fintech and e-commerce lagged, with fintech falling 11% YoY to $249 million and e-commerce dropping 31% YoY to $245 million. Bengaluru continued to lead in funding, raising $1.4 billion across 80 deals, accounting for 65% of deeptech capital. Investor exits increased, with 22 M&A deals close and six new-age tech firms listing in Q3, providing liquidity for KKR, Accel, 500 Global, and Tribe Capital.

72% of surveyed investors now hold IPO-ready late-stage companies. At Inc42's CTO Summit 2026, technology leaders emphasized the importance of strong systems, human oversight, precise access rules, and high-quality data for AI applications. They also stressed the need for AI products to function on budget smartphones, patchy networks, and multiple languages.

Simple Energy raised ₹1,750 crore in its Series C round, bringing its total funding to $264 million. The electric vehicle maker currently has 80 sales outlets across 60 Indian cities and a production capacity of 10,000 units per month. IRDAI faced criticism over its proposed 2% remuneration cap for loan-linked insurance products, with critics arguing it could hinder coverage for rural and low-income borrowers.

The regulator released a consultation paper suggesting tighter regulation to improve transparency in insurance distribution. Moneyview, a fintech unicorn, is set to list on exchanges today, with its IPO valued at ₹5,985 crore and shares priced at ₹34. The company's early backers have seen significant returns from the IPO. Apple Pay launched in India, initially supporting Visa and Mastercard credit cards issued by Axis Bank.

The service, rolled out in partnership with Juspay, Cashfree, and PayU, enables iPhone, iPad, and Apple Watch users to make online and in-store payments.