The funding for Climate-tech showcased resilience in the first half of FY2026, totalling $1,253 million across 73 deals, following an exceptional $1,435 million in the preceding period (October 2024 - March 2025)
However, this moderation conceals a significant and healthy shift in the market. While exceptionally large, late-stage mega-deals characterized the preceding period, the current period demonstrates a substantial acceleration in early and growth-stage funding, indicating a broadening and maturing ecosystem. The prior period was heavily influenced by a single outlier (a $1.0 billion investment in Erisha E-Mobility).
The data indicates that between October 2024–March 2025 and April–September 2025, funding patterns shifted from late-stage deals toward early and growth-stage enterprises. Funding for Series A rounds experienced substantial growth, increasing by 359% from $111.2 million to $510.1 million. This trend suggests a robust pipeline of companies successfully advancing from the Seed stage and securing capital for expansion. Concurrently, seed stage funding also saw a significant increase, rising from $55 million to $111 million, although the number of deals remained constant.
This trend reflects a robust positive signal, indicating a strengthening of the sector's foundations, supported by a strong pipeline of new companies and the availability of capital for scaling proven technologies.
Sustainable Mobility continues to dominate the Climate-tech landscape, retaining its position as the leading subsector in H1 FY2026. The segment attracted over $955 million across 28 deals, reinforcing its role as the cornerstone of investor activity within Climate-tech.
EV manufacturers and component innovators led the charge, with notable rounds raised by Euler Motors ($75 million, later stages), Blue Energy Motors ($30 million, Series A), and Ultraviolette Automotive ($21 million, later stages). These deals demonstrate continued investor conviction in India’s electric mobility market, particularly in the commercial vehicle and high-performance EV segments.
Beyond OEMs, innovations across battery-swapping, charging infrastructure, and software systems for EV optimization gained traction. Battery Smart ($29 million, Series B) expanded its battery-swapping network for electric two- and three-wheelers, while Vecmocon Technologies ($18 million, Series A) advanced in-vehicle intelligence and control systems. EKA Mobility ($23.7 million, Seed) reflected growing confidence in new EV manufacturing models combining design, component sourcing, and digital integration.
Collectively, these developments highlight India’s evolving e-mobility ecosystem – expanding from production-focused OEMs to deep-tech component specialists and charging infrastructure enablers.
The Energy segment ranked second in total funding, raising $184 million across 22 deals in the first half of FY2026. While the quantum moderated compared with $182 million in the preceding period, the sector showed broader diversification across clean generation, power electronics, and energy management technologies. Key deals included GoldiSolar, Offgrid Energy & EEPC.
The sector additionally experienced heightened innovation in grid digitization and smart energy management, with emerging companies introducing integrated hardware-software platforms for monitoring, optimization, and storage integration. The confluence of clean energy generation with IoT-driven grid intelligence and battery technology continues to attract investor interest in this domain.
Waste Management and Circular Economy emerged as a major growth segment, with funding rising by over 480% from $11.2 million in October 2024–March 2025 to $65.16 million in April–September 2025, marking a rebound toward the $90 million invested during July–September 2024.
Stage Wise Snapshot
Sector Wise Analysis
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