Investment in Indian technology companies slipped to its lowest monthly level in a year in October, with startups raising a combined $592.5 million, according to data from market intelligence firm Tracxn.
That figure marks a 24.3 percent decline from the $782.8 million raised in September, and a 56 percent drop from the $1.35 billion collected in October 2025, when 180 rounds were recorded. The figures were reported by The Hans India.
The headline number hides a notable split: large late-stage cheques largely disappeared, while early-stage investors became noticeably more active.
Late-Stage Capital Pulls Back Sharply
Late-stage funding was the main drag on October's total. Companies at this stage raised $153 million, down 72 percent from $539.8 million in September and well below the $877.4 million recorded a year earlier.
Despite the lower dollar totals, Tracxn's data showed the number of funding rounds rising to 104 from 81, suggesting that capital was spread across more, smaller deals rather than concentrated in a handful of large ones.
Early-Stage Rounds Carry the Month
Early-stage startups moved in the opposite direction. Funding at this stage jumped 114 percent month-on-month to $361.6 million, up from $168.6 million in September.
The segment also grew 10.8 percent compared with the $326.4 million raised in October 2025. In total, early-stage rounds made up 61 percent of all tech funding during the month.
Seed-stage activity was steadier but mixed. Seed funding edged up 4.8 percent to $77.9 million from $74.3 million in September, yet it remained 45.4 percent below the $142.6 million raised a year earlier.
Even Leads a List of Mid-Sized Deals
The largest single transaction of the month was a $50 million Series B round for Even, a Bengaluru-based health insurance provider. The round was led by Khosla Ventures.
Close behind were automotive aftermarket and vehicle service platform myTVS with $44.1 million, sports and fitness brand Boldfit with $41.5 million, healthcare advocacy services provider Baba with $40 million, and e-mobility solutions company GreenCell Mobility with $34.5 million.
Other notable rounds went to Inner Sky Labs ($30.9 million), QuBeats ($15 million), Cent ($15 million), Nat Habit ($14.7 million) and Clinics On Cloud ($14.3 million). The absence of any deal above $50 million underlines how thin the market for large growth rounds was during the month.
IPO Activity Picks Up as M&A Holds Steady
Public market exits offered a brighter picture. Twelve tech companies listed on the stock market in October, compared with five in September and nine in October 2025. Among them were Zetwerk, Tonbo Imaging and SMT.
Acquisition activity was flat on a monthly basis, with six deals recorded, the same as September but fewer than the eight seen a year earlier. The largest disclosed transaction was Atlasclear's purchase of ARK Financial Services for $24.5 million.
PicknGo and UpTodd were also acquired during the month, though the terms of those deals were not disclosed.
What the Shift Means for Founders
The October data points to investors favouring smaller, earlier bets while holding back on the large cheques that typically fuel late-stage expansion. For early-stage founders, that could mean a relatively receptive environment, particularly in sectors such as health, mobility and consumer brands that featured among the month's top deals.
Late-stage companies, by contrast, may face a tougher path to raising growth capital privately. The rise in tech listings suggests some are turning to public markets instead, a trend worth watching as the year draws to a close.
Source: The Hans India
