Venture capital funding into Indian startups rebounded sharply in the last week of the month, driven by a few large deals. Startups raised a total of $382 million across 21 transactions during the week, compared with just $99 million across the previous week. There were 21 deals this week, of which 11 were in the pre-Series A category, accounting for $11 million in funding. The sharp increase in overall funding was driven largely by a few sizeable transactions involving DMI Finance, Ultraviolette, and Ema. Though there has been an increase in funding, the biggest contributor was DMI Finance at $152 million, but this is not a measure for equity financing as the funds raised were primarily through the debt route. The true strength of VC funding lies largely in equity financing, and money raised through this route was actually weak. However, the spread of investors' bets in the Indian startup ecosystem was an interesting development as startups from segments such as electric vehicle, finance, and artificial intelligence (AI) raised funding. As the year comes closer to end, the VC momentum is unlikely to shift much when compared to 2025. It is likely that the total figure in 2026 will be mostly at the same level of 2025. This is primarily because of the absence of a credible pool of AI startups. Key transactions NBFC DMI Finance raised Rs 1,455 crore ($152 million approx.) through non-convertible debentures (NCDs) with participation from mutual funds, AIFs, family offices, corporates, etc. Two-wheeler EV manufacturer Ultraviolette raised $85 million from Yali Capital, TDK Ventures, and LipBu Tan. Enterprise AI startup Ema raised $77 million from Creaegis, Accel, S32, and Prosus. Defence manufacturer Hughes Precision Manufacturing raised Rs 250 crore ($26 million approx.) from undisclosed family offices and ultra-high-net-worth individuals (UHNIs). AI startup Sol raised $4 million from General Catalyst, Nexus Venture Partners, DeVC, Peercheque, and Kunal Shah.