SynopsisIndian startups secured approximately $1.1 billion in May, a significant 37% year-over-year increase, driven by Rapido's substantial $240 million funding round. While overall capital raised surged, the number of funding rounds saw a decline compared to the previous year. Late-stage deals dominated the funding landscape, accounting for the majority of the capital deployed.ETtechRapido’s mega funding round helped Indian startups raise about $1.1 billion in May, a 37% increase from $811.6 million raised during the same month last year.The monthly tally was also 69% higher than April, when startups raised $659.6 million across 70 rounds. However, the number of funding rounds fell to 65 from 148 in May last year.ETtech
Late-stage deals accounted for $903.6 million, or 81% of the total capital raised during the month. Early-stage startups raised $161.4 million, while seed-stage companies secured $49.4 million.Fireside Ventures, 8X Ventures and Alkemi Growth Capital were the most active investors in May, with two deals each. Fireside backed Kisah and CHOSEN, 8X Ventures invested in Solinas Integrity and TIEA, while Alkemi Growth Capital participated in rounds of CHOSEN and Alphadroid.Deals of the monthRapido: In the largest deal this month, Rapido raised $240 million in fresh capital in a round led by Prosus at a valuation of $3 billion. Existing investors WestBridge Capital and Accel also participated. The fundraise was part of a larger $730 million round, which also included a secondary share sale.ET had first reported in March 2026, that Accel Leaders Fund was expected to join the transaction.ETtech
